Usually at the end of the year and as the Nowruz holiday approaches, all those involved in the steel supply chain are trying to make the greatest impact on the prosperity of the steel markets in order to make the most of this acquired benefit. In previous years, we have witnessed unity and integration in the course of steel chain transactions. In this note, we will discuss this issue in more detail. Please be with Artan Press.
*** Wrong government directives hinder the development of the iron and steel market
In the current situation, and due to the stability of international steel sanctions and the many difficulties in the country’s export path, the most attention should be paid to the domestic sector and competitive prices, but wrong government directives give the wrong address to the development of the iron and steel market. And we are witnessing a market recession in a situation where almost all industrial markets in the world are in high demand and this recession is not acceptable at all.
Unfortunately, government directives have caused a great deal of controversy between the downstream and upstream chains, with each group blaming the other for the market downturn and believing that the rent is higher than the other, while the rent must not be even one rial. In any of the country’s steel value chains. So it is clear that the fight is over the distribution of booty.
*** The main reason for the violation of downstream steel industries
Rollers in the downstream steel chain have been criticized and accused by other artisans of failing to meet their stock market obligations. Pressure on policymakers and irrational pricing of steel products on the stock exchange in recent months is the main reason for the downstream steel industry because selling off-exchange products has huge benefits for them and they prefer the free market to the stock market.
*** Pricing and double pricing of steel products
Another issue in the steel market is the issue of pricing and double pricing of steel products. Principles are created when prices are double priced. The unsuccessful example of this double pricing was experienced by the Iranian economy in the dollar years ago. Unfortunately, it was considered a great failure in grammatical pricing, and in practice, it wastes a lot of capital from the country and the treasury.
Unfortunately, this path has been re-tested and re-tested by the steel and industrial policy maker in the steel sector. The doubling of the price of steel took place after the abolition of the pricing method. It was after the announcement of the Steel Code that analysts and market participants called on the government to free up the steel market and not move under the pressure of restrictive parameters, but because the government continued to push for market regulation and did not stop intervening in the steel market. The two market prices and the high profit in selling the product out of the stock exchange, the downstream industries bring only a small part of their products to the stock exchange.
*** Why do not rollers accompany the government?
The asymmetry in the downstream supply of steel downstream chains, such as rolling stock, has led to a significant portion of these products being sold on the open market. Do? Rollers claim that they buy ingots from Zobahan at exorbitant prices and that the government does not provide them with any support in this area, so they see no reason to offer their products at government-ordered prices on the stock exchange, and this is exactly the cause of inflammation and Of course, the recession in the Iranian steel market is considered.
*** Untimely entry of the government in steel pricing
Unfortunately, the government entered the market at a time when domestic steel prices were calculated based on the base export rate. Under these circumstances, the cost price of steel products was much higher than the rates set by the government in the pricing procedure for the sale of products. In this situation, it is clear where the result will go. In practice, the first rates, which were the announced subsidy rates, did not reach the consumer, and the final consumers bought the products they needed at the second rate, which was much higher than the first rate. consumer. In fact, some brokers and middlemen were making these sums.
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