The turmoil in the steel market, which was also criticized by the leader of the revolution, has made production conditions very difficult for downstream industries in recent months. After the emergence of all kinds of problems in the country’s steel industry to provide raw materials and intermediaries at reasonable prices for downstream industries, there was no media that did not shout the need for urgent attention to this strategic industry by explaining the system of steel industry issues. Because the wheel of a significant part of the domestic industry depends on the supply of various types of steel sections, and on the other hand, steel products have a say in the field of non-oil exports.
Two days ago, the Supreme Leader of the Revolution, in a meeting with members of the government, stressed the importance of “eliminating inconsistencies at the lower levels” in order to increase and boost production, saying: “Sometimes there are strange inconsistencies in the downstream sectors. For example, a steel consuming factory complains that they do not give me steel sheets; “Steel sheet that is produced domestically.”
The study of the steel market shows that, despite the fact that the production of various types of steel sections by factories is in excess of domestic demand, the steel market still suffers from deficits and supply-side tensions; As if no one knows the fate of some of the products produced!
*** When non-expert steel quotas emerge from the open market!
Evidence shows that the transfer of steel sections, some of which are received by the government quota in the commodity exchange, is sent to the open market with the motive of gaining a marginal profit. This destructive phenomenon, in addition to confirming the need to review the allocation quotas of the optimization system, also introduces the focus on grammatical pricing as a factor for demand pressure in the commodity exchange.
In this regard, Keyvan Gardan, Director General of Metal Industries and Home Appliances of the Ministry of Silence, said in a TV program last week: The Deputy Minister of Industries of the Ministry of Silence has been in charge of organizing the demand side of the steel market and has reviewed their quotas and receipts It becomes.
Ignoring the need to revise the quotas of some production units has also caused the real needy steelmakers to be forced to procure raw materials from the open market, and this is a factor to increase the cost of production of products such as home appliances, automotive, food industry and construction industry. And it has become a direct impact on people’s livelihoods.
*** What is happening in factories producing ingots and steel slabs?
Due to the shortage of some steel sections for real applicants due to the unfair and limited allocation of these steel raw materials by the optimizer system, speculations about the formation of underground hoarding, free market sales and even opaque export of steel sections have become more prominent.
According to the repeated statements of steel industry experts and what has been said before, the only way for the turbulent steel market to calm down is to oblige the producers to clarify their performance and present all steel products in the commodity exchange; This is also welcomed by steelmakers.
In this regard, Reza Shahrestani, a member of the board of directors of the Association of Steel Producers, noting that all steel sheets should be sold on the commodity exchange, announced that the price of hot rolled sheets from the commodity exchange to the open market has doubled and this has led to rents. He has known 40 thousand billion Tomans in this field!
Also, Keyvan Gardan, Director General of Metal Industries of the Ministry of Silence, announcing that the supply of steel by machining should be completely eliminated, said: “We have 7 companies producing hot rolled sheets that have 6 million tons of sheets available on the stock exchange. Offer their production heat on the stock exchange.
He added: “We have 5 companies producing cold sheets that produce 2.2 million tons, of which 50% of this capacity belongs to Mobarakeh Steel Company, and all these companies are obliged to supply their products.”
*** Steel companies were required to submit information
Therefore, due to the need to create transparency in the performance of production units in the latest decree, the market regulation headquarters obliges all companies producing billets, blooms and slabs to record initial inventory information, production, sales, consumption and warehousing reports in comprehensive trade and comprehensive systems. Has warehouses.
*** The voice of the judiciary also came!
The consequences of the turmoil in the steel market have been such that the head of the judiciary reacted to it a few days ago. Referring to corruption and deviation in the steel industry, Mohammad Ibrahim Ra’isi said at a meeting of the Supreme Council of the Judiciary: “Where does the steel production of domestic companies go, where applicants are forced to procure it at several times the price from the black market? This is a serious question for individuals. Follow up with government sanctions and the inspectorate. “If the violations and corruption in this area were convicted for the mentioned devices, state the cases.”
What can be deduced from the statements of the head of the judiciary is the deterioration of the steel market and the need to address the issues and problems in this area without interruption. Basically, if the problems of the steel industry had not caused macroeconomic and social damage, the head of the judiciary would not have entered it with a critical approach.
After the parliament did not vote of confidence in Hossein Modarres Khiabani as the third proposed minister of the Ministry of Silence in the 12th government, the president appointed Jafar Sarghini as the acting Minister of Industry, Mines and Trade on August 16th. Accordingly, improving the steel market is one of the most important demands of the new supervisor.
*** Will the situation be adjusted with the arrival of Sarghini ?!
In this regard, Sarghini, who also has the Deputy Minister of Mines and Mining Industries of the Ministry of Silence, recently emphasized on the sidelines of the cabinet meeting, referring to the problems in the steel market.
It is not an art for Iranian steel to want to boost foreign industries, but it must first boost domestic industries and then export its surplus.
He added: “With the new decisions that have been taken in the field of steel and announced with a new directive, the export of those producers who did not offer their products on the stock exchange and preferred to export to domestic supply, will be stopped.”
According to Sarghini, according to a recent circular issued by the Ministry of Silence, production units are required to offer 60% of their products on the stock exchange and the other 40% are allowed to offer or export domestically. It seems that with the introduction of more steel products in the commodity exchange, these products will be intercepted and their prices will gradually decrease.
On this basis, it remains to be seen whether the actions corresponding to Sarghini’s remarks at the beginning of his entry into the Ministry of Silence about steel, in a situation where downstream steel industries see price increases as the only way to cover the costs of expensive raw materials, will mitigate the situation or disaster. Steel industries will continue to thrive.
Now that the pain and treatment is clear, no excuses are accepted for the continuation of the status quo, and it is expected that with the increase of policymakers in the steel sector, as well as the high motivation of the new head of the Ministry of Silence, the volatile steel market will be settled soon.
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