China is set to increase its steel production by about 47 million tons by the end of 2021, including four 12-million-tonne plants, and will definitely work with Iran in the mining sector to supply raw materials for these plants, which will be an issue. It is not in line with the macro policies of the country.
This week, the United States released a list of new sanctions against Iranian steel, which had happened many times before, and did not disrupt Iran’s production and trade, and only made the producers’ determination to supply domestic raw materials and equipment more seriously. has done.
According to experts in the Iranian steel industry, it is evolving and this trend should be fertilized by relying on domestic capabilities. Even Ahmad Denyanvar, a steel industry expert, believes that in the current context of Iran’s cooperation with China in the mining and steel industry, we can not Let them do a good job because the country is currently on the agenda to increase production of about 47 million tons of steel products, and if it enters the phase of cooperation with Iran in the mining sector, it is only for the purpose of buying raw products, and this is in line with the country’s economic policies. does not have.
*** ۱۵-year embargo on Iranian steel
A member of the Iranian Steel Association, pointing out that the steel industry has been under sanctions since 2005, said: “At that time we produced ten million tons of steel and today it has reached 32 million tons, and even in 1997 and 1998 about 10.5 million tons.” We have had exports, so it can be said that sanctions have not had much effect on the growth of the steel industry.
Ahmad Donya Noor, stating that the current corona has affected economic activity, especially construction and the automotive industry, added: “Demand for metal products has decreased worldwide, so in the past few months, Iranian steelmakers have exported.” Have expanded to neighboring countries to compensate for the decline in domestic demand.
Emphasizing that the growth rate of exports in the last 9 months shows that the upward trend of steel exports continues, he clarified: The discussion that took place last week about off-exchange steel pricing is more about violating the rights of producers because prices It is determined by supply and demand, and the price of a commodity cannot be reduced by order.
Dunya Noor pointed out that government units reduce their prices regardless of the cost price in order to cooperate with the government, and added: “When state-owned companies orderly lower prices, they will cause accumulated losses in the future.” Which occurred in 1986 due to mandatory pricing and took years to eliminate the accumulated losses of these companies, which were also profitable.
*** Exchange ordering pricing
Emphasizing that in the current situation, the stock exchange also prices on ordered products, he said: the stock exchange does not play a role as a price identification tool. In other words, in Iran, the stock market has a market control role. This means that basically, in the long run, when the parent companies suffer losses, it will be transferred to the downstream circles, and this chain of unemployment and bankruptcy will continue.
A member of the Iranian Steel Association said that the issue of Iran’s cooperation with China does not have a positive impact on the industry and mining sector. “Currently, the Chinese are pursuing their own interests and are known all over the world for taking workers to projects with them,” he said. If the Chinese open their feet to the Iranian mine, they will definitely increase the sale of raw materials, because by the end of 2021, they are supposed to increase their 47 million steel production, which includes 4 factories of 12 million tons, and they are definitely thinking of supplying The raw materials are for them.
*** Expansion of China Steel
He pointed out that China has shut down several steel mills in the past two years due to pollution. “The country is closing down old mills and replacing new ones, and the Chinese will not leave Iran for the next few years,” he said. Buy because the production circles of this country have developed.
This week, the United States released a list of new sanctions against Iranian steel, pushing Iran closer to cooperating with China, which is set to increase its steel production by about 47 million tons by the end of 2021. Iran’s mining and steel sector is a necessity for the country, but certainly cooperation with Iran in the mining sector will be in order to supply raw materials for these factories, while this issue is not in line with the country’s macro policies.
Wave News Agency
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