The Commodity Exchange took the path of recession, fear and watching in May of this year. The main reason for this can be attributed to changes and developments in the field of foreign policy. The dollar exchange rate fell to some extent in the domestic market, which delayed the inflow of capital into the stock market, especially the commodity exchange. Rising prices for steel products, however, was an issue that occurred in May due to rising world prices. In the following, we will evaluate the commodity exchange and review its record regarding steel. Please be with Artan Press.
*** Commodity exchange in Steel record in terms of price growth
Experience has proven in the domestic market, for many reasons, the most important of which are sanctions and a kind of abstraction of our domestic market from global markets. In most of the country’s commodity markets, we have witnessed phenomena such as “prices sticking to the ceiling” or “delays in moving in line with global rates.” This was very evident in the market movement last month.
For example, it is enough to go back to Wednesday last week. The only deal that was done; The supply of 1,000 tons of Isfahan Steel Bloom ingots was. This transaction, which was finally traded at a competitive average weighted rate of 125,499 Rials or about 13,680 Tomans, including VAT, with an average of 3.47% of the competition, was compared to the base rate of the wrist. This literally shows the recession in the May market well.
*** Strategic mistake in converging commodity exchange rates and global markets
We are in a situation where the market maker has made every effort over the past two months to bring steel prices closer to world and export rates. But they never considered what to do with such phenomena as “stickiness …” or “delay …” when global markets retreat? In fact, it does not matter to them, because the road they imagine has only one side; And only the increase in prices in the commodity exchange.
This will make inflation very threatening in the event that the dollar rises. The market maker must consider all aspects. Imagine global steel prices with China control policies; Decide to retreat. ; This means that finally this superscycle will have a noticeable correction from somewhere onwards that no one can hide this fact. The question is how the commodity exchange, which is aligned with rising prices, will react in this situation. Do we have to wait for another distrust in the stock exchanges?
*** Threat of price stickiness in the commodity exchange in Steel record
The tragedy of this scenario begins here, due to phenomena such as “delays in compliance with price retreats” and “sticking to ceiling rates”, which are the phenomenon and character of the domestic domestic market that has been sanctioned by abstraction. The liquidity giant of this market has just woken up and wants to move in the market. What disasters will not befall our domestic consumer and our markets.
Unfortunately, due to the sharp decline in liquidity in society, with the further increase in prices, the housing and car markets will certainly be out of economic justification. This is a big warning to the market maker, which unfortunately has not been taken seriously to date. We have seen its example in the past few days in some commodity exchanges Commodities, especially smelting beams , which will definitely happen if this internal wave starts; Policymakers who have brought the domestic market here under the slogan of the Global Steel Village are forced to change the situation completely, in contrast to the process of the global market return.
*** Global market reversal scenario and its threat to the commodity exchange
The global market will sooner or later return from its historic highs. But it remains to be seen whether the Iranian Commodity Exchange is ready to return to its astronomical prices these days. Work wisely; The move to the average rate was at least 1 month before it was planned, but the power of some domestic economic mafias was so high that they did not allow this mechanism to be implemented, and in general the term “price reversal” in the domestic market for them Not defined and not applicable.
*** Impact of exchange rate on commodity exchange in Steel record
After a few days, the rising price of the currency has returned to a downward trajectory. Given the overall performance of the Commodity Exchange in the last month, this issue as a housing can neutralize the impact of rising prices in the steel sector. But it should be a concern one day when the dollar returns to its previous uptrend. Last month we saw weak competition to buy sections.
Prices are also rising in global markets, with slabs up more than $ 22 and metal down $ 5, according to the latest Metal Bulletin report. As a result, due to the upward trend in various markets and considering the range of positive fluctuations of 3% in base prices until next week, we will see price growth. It is expected that the trend of last month until mid-June will affect the commodity exchange.
*** Acceptable performance of Shasta in Commodity Exchange
Another issue that should be mentioned in the performance report of the Commodity Exchange was the good and satisfactory performance of Shasta Financial Group in the Commodity Exchange last month. Shasta Group’s trading volume in the Commodity Exchange in the first two months of 1400 (from April 1 of this year to May 15) has been associated with a growth of more than 100% in trading volume and more than 490% in trading value. Significant differences in the performance of the group compared to the total transactions in the commodity exchange show the determination of Shasta Group to exchange the supply of products in the subsidiary companies.
*** Shasta positive outlook on the energy exchange
A positive financial outlook awaits Shasta Financial Group and its subsidiaries in the energy exchange and other industrial sectors Thought to be. With the increase in the acceptance of the products of the subsidiary company in the sub-market in 1400, we witnessed a jump of more than 1.6 percent in the value of the group companies’ transactions in the sub-market. The products of Khuzestan Silk, Pars Industrial Soot, Iran Carbon, Simorgh Carbon, Latif Paper and Niroo Klor were traded on the Commodity Exchange for the first time in 1400.
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