TEHRAN, Iran — A cursory review of changes in the volume of untreated steel, base metals and petrochemical products traded on the Iran Mercantile Exchange reveals that demand is depressed. Disregarding imports, it is evident that local industry is on a downward trajectory.

A survey conducted by the bimonthly economic publication Payam-e-Eghtesadi shows that the volume of steel exchanges reached 5.46 million tons in the Iranian calendar year 1394 (March 21, 2015-March 20, 2016). This figure is a 31% drop from the preceding year's 7.9 million tons. Similar declines can also be seen in the trade of other key goods. For instance, during the same period, consumption of copper decreased by 20% while aluminum consumption dropped by 5%. Meanwhile, the volume of petrochemical products traded on the Iran Mercantile Exchange dropped from 2.9 million tons in the Iranian calendar year 1393 (March 21, 2014-March 20, 2015) to 2.5 million tons in 1394, a 13.7% decline.

In sum, as far as the exchange of base materials is concerned, the past Iranian calendar year ending March 20 was one of decline, confirming the reported 2.2% negative growth of local industry.

Among the issues driving the decrease in the volume and value of transactions on the Iran Mercantile Exchange are decreased funding for construction projects, a decline in demand for housing and the growing recession in the industrial sector.