Alireza Razm Hosseini, as the new Minister of Silence, has received a vote of confidence from the parliament and has recently taken the seat of this ministry. Since steel is one of the largest and most profitable commodities in Iran, in this memo we will discuss the policies of the new Minister Samat regarding the steel chain. Please be with Artan Press.
*** The first action of the new minister
The first issue raised by Alireza Razm Hosseini regarding the steel chain was the issue that steelmakers are obliged to offer all their products, including ingots, slabs and the final product on the stock exchange. This issue has caused the balance of the steel market because with Increasing supply in the stock market will see prices move to their real level
Recently, we have witnessed very high excitement in the steel ingot and rebar sector in the commodity exchange. The form of this excitement originated from the non-supply of these two commodity items in the exchange and machining transactions had helped Bazer inflammation. Proper construction will make prices rational and will cut the hands of speculators and fluctuators of the steel market from the steel chain. In case of excess supply of steelmakers, we will see price balance in the commodity exchange
Another issue that can be deduced from the new minister’s approach is his attention to the supply of basic goods, so in the near future we will see an acceleration in the release of goods stored in customs, although this process may take time, but signals to the supply market It reduces the pressure on the production side and increases the purchasing power. This also reduces the price of steel
*** The new minister pays attention to Hormozgan province
Minister Samat’s attention to Hormozgan province is another issue that is not far from the eyes of analysts in the domestic steel market of Iran. There is no one of the provinces in the country. Therefore, we will most likely see facilities for economic prosperity in this province
Since Hormozgan province is considered as the main highway for steel exports, in the near future we will see export incentives from the infrastructure of this province.
Establishing a working group to facilitate and remove barriers to production in the parliament is one of the successful legislative measures from the point of view of the new minister. We will supply steel.
The non-clearance of basic goods and some perishable items in the country’s customs is one of the concerns of the new minister. Since this problem is rooted in the dispute between the central bank and customs, the Ministry of Silence as a patient can help solve this challenge The new minister’s concern may bode well for the news.
*** Assignment of stagnant mines to new investors
Another issue that the new minister has addressed is the delegation of authority to the Provincial Mines Council to transfer stagnant mines to new investors. This means that stagnant units will enter the auction process within 3 months if they do not reopen and operate.
This is a positive prospect for steel investors as they can buy a stagnant steel unit at a low cost and invest in an attractive steel market.
Iran’s steel market is a cohesive and strong chain, so in the short term, steel will not be affected by sanctions and dollar fluctuations can not disrupt its pricing system. The reason is self-sufficiency in the form of parts of this chain, but with all these interpretations, why? We have witnessed the rapid growth of prices in the steel market. The answer to this question is one of the most important problems that the new minister should pay close attention to.
*** Monitor pricing practices and balance supply and demand
Monitoring pricing practices and balancing supply and demand is one of the most important steps that Minister Samat should put on his team’s agenda with high priority. Last year, we saw a 109% growth in domestic steel transactions as the industry Steel is a parent industry. Therefore, we have witnessed a sharp increase in prices in many markets. We have witnessed a clear example of this price increase in car transactions.
The automotive industry is one of the largest consumers of steel. If the pricing method reverses the previous path, we will see a sharp rise in prices in the commodity and automotive markets. This will definitely challenge the performance of the new minister. That is why. Creating balance in the steel market is the most important action of the Minister in the early days.
*** New US government in favor of Iranian industry?
Given the new administration in the United States, we will most likely have better conditions for Iranian industry than the Trump administration. The new minister must intelligently facilitate the conditions for the export of minerals and steel. The problem that may arise in this direction is the creation of self-imposed sanctions, which unfortunately has hit the Iranian economy the hardest in recent years.
In addition to controlling the price of the steel chain and freeing stagnant mines, attention must also be paid to environmental components. The use of new approaches to communication technology and software systems in assessing the level of pollution in the steel industry and calculating environmental risks is one of the issues that has been neglected by the ministers of silence in recent years. If you pay attention The new minister will see sustainable development in the steel and mining industry.
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