With the increase in steel prices in the open market and commodity exchanges, we will see branches regarding changes in the prices of home appliances in the market. This is despite the fact that the fall in the exchange rate has reduced inflation expectations in the society. But estimates show that the price of home appliance has not been affected by this decrease. Please be with Artan Press.
*** The home appliance market neglected to reduce the exchange rate
Reducing the price of currency due to the market dependence of supply and demand, can not have a significant impact on the price of products. At the moment, with the fall of the exchange rate, the price of steel in the world has risen, but if the exchange rate continues to fall and the price of raw materials needed for household appliances, including petrochemicals and steel, is in line with this decline, the production situation will be positive. With the exit of foreign brands from the Iranian home appliance market, we are witnessing a monopoly in the production of this category of consumer goods. Therefore, the competition environment in the home appliance market will not be in the buyer’s favor. This has caused the price of home appliances in Iran to experience a steady upward trend.
*** Factors influencing the growth of home appliance prices
With rising wages, the price of some home appliances has risen by 10 percent and items such as televisions by less than 10 percent. With the possible lifting of sanctions, ready-made home appliances may not be allowed to be imported and only the import of home appliances and its assembly in Iran will be agreed upon. More than 15 million home appliances were produced last year and appropriate measures have been taken to develop this construction-oriented industry and have created employment for more than 1.3 million people. Last year, despite the restrictions on the production sector, this industry was able to achieve 78% growth, while foreign brands left Iran and manufacturers were able to achieve this leap in production by relying on domestic capacities.
*** The role of the steel market in increasing the price of home appliances
The steel market can overshadow the pricing path in this consumer product because it directly affects the cost prices of steel products. Growth in steel prices If the trend that has been going on since the beginning of the year continues, we will most likely see a 50% rise in prices for steel sheets for reading equipment. We have to put the index of steel price increase along with other factors influencing prices and see if the price trend of home appliances will increase again or not?
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