In its last working days, the government unveiled a plan that attracted the attention and reaction of many market participants. The imposition of export duties on minerals has been a recent issue in the market due to the decisions of the government and the Ministry of Silence. This issue is debatable from different aspects. First, this approach accelerates corruption in the export process. On the other hand, this issue could question Iran’s bargaining power. The wound of Turkish occupation of the Iranian market is still inflamed. It is surprising that the government makes these decisions in such circumstances. In the following, we will explain this issue. Please be with Artan Press.
*** Obtaining iron ore tolls in the last working days of the Rouhani government
The issue of iron ore complications in recent years has been a recurring debate in the Iranian Iron Ore Association and the open court of the parliament. During this time, several solutions have been offered. The Iranian Iron Ore Association insists on replacing iron ore complications with other control methods. This will both help regulate the domestic market and achieve export goals. It can also free the beginning of the steel chain, the iron ore sector and the mining industry, from suppressing accumulated profits and losses.
Although this approach to iron ore has failed for many years, the government has insisted on imposing export duties on minerals in the last days of its operation. In the last days of its life, the government issued a circular on customs duties, showing that it had questioned all the proposals and activities of the Iron Ore Association and that their efforts had been in vain.
*** Initiation of objections at the beginning of the decision to collect export duties on raw materials
But why did the opposition to the export duties take place immediately after the announcement of the government? The mining sector has received fatal blows from these effects in previous years. By issuing misplaced mining policies, the government has provided large rents to steelmakers, with the steel sector offering its products to consumers at 100 percent of world prices, but miners selling their products at 40 percent of world prices. This divergence has caused the mining losses to always accumulate in the past years.
This sharp difference in the steel value chain led the miners to immediately ask the parliament to reject the government’s decision. But what happened to the rights of the miners? In this game policy and decision-making, the Steelers had the main opinion, and the headline of all these bargains is the supply of iron ore, concentrate and pellets at a lower price, so it must be acknowledged that the policy-makers of these directives are people who have high prices. Steel and lower prices benefit the mining industry.
*** In the name of preventing the sale of raw materials; To the domestic manufacturer
Price policy is an issue that has led some steel market participants to levy tariffs on some inputs. To date, pricing strategies have been based on benefiting the steel chain and the least attention has been paid to the mining sector. If the miners are not able to sell their products at a price that covers their costs or is not profitable, they will not be able to develop mining projects in the country, and the future of the country’s mines will be a big question mark.
This is a topic that has been repeatedly stated in analyzes, and experts have given lectures and meetings for hours on the importance of paying attention to it. Export duties may, at first glance, help eliminate crude sales. But as long as the price balance in the domestic market is upset, it is an excuse to sell cheaply and create rents in the domestic market in favor of steelmakers.
*** The government’s hasty decision to impose export duties on minerals
The export duties of the mining industry are justified if it is on the market balance, but this decision has been made hastily, unprofessionally and without considering the opinions of the private sector. The collection of export duties on the mining industry in the last days of the twelfth government, attacked the Minister of Silence.
It can be justified if the export duties of the mining industry are based on balancing the market, but this decision seems to have been made hastily, without expertise and without considering the opinions of the private sector. It eats private factories because this sector always has problems in supplying its raw materials.
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