One of the things that is on the minds of consumers of concentrate and pellets is the importance of the table announced by the Ministry of Silence
Raw material quotas for the country’s steelmaking units is one of the measures taken by the Ministry of Silence for the fair distribution of raw materials among steelmakers, which was initially formulated for the first three months of the year and now has a 9-month plan.
It remains to be seen to what extent quotas can cut traders out of the concentrate and pellet market and ultimately lead to a return to calm in the market, only to be determined over time.
Raw material quotas for the country’s steelmaking units, after five months of implementation, still could not eliminate the deficit of steelmakers’ raw materials. This quota, which has been communicated to mines and steel companies, should be considered for performance control and monitoring.
In fact, this quota, which is based on the total statistics of production of concentrate, pellets, sponge iron and ingots, and its preparation and distribution with an equal planning ratio, nevertheless has some drawbacks; For example, in the tables designed to distribute raw materials to steelmakers, the quota is lower than the actual needs of companies.
*** Modification of the quota plan for raw materials to steelmakers
This issue is considered as a significant and effective problem and it is necessary to consider and correct this in order to continue the rationing of raw materials to steelmakers.
This is because in the raw material quotas tables for the remaining 9 months of the year, this case still remains and despite the objections to the problems in the type of quotas, the steelmakers only saw that some of the technical problems were corrected and some of the deficits still exist.
In fact, these tables indicate the existence of a deficit of raw materials; However, this deficit, instead of being fairly distributed among all, is only noticed by steelmakers who do not have access to the mines, and mines that have pelletizing, sponge iron and steelmaking units are not subject to the material deficit in the quota.
On the other hand, steelmakers facing a shortage of raw materials must either obtain their demand deficit from the open market or reduce their production.
The important point that can be made here is about the deficit created in the concentrate and pellet market. Whether the statistics provided by the producers of this raw material are correctly announced or whether there is a possibility of inconsistencies in the actual and provided production statistics, which leads to a deficit in the market?
*** Deficit in concentrate and pellets of the country
One of the things that is on the minds of consumers of concentrate and pellets is the importance of the table announced by the Ministry of Silence. In this regard, it can be said that due to the deficit in the concentrate and pellets of the country, in order to reduce the maximum effects of this deficit on the country’s steel production, the Ministry of Silence has committed producers and consumers to adhere to the distribution table in 1999 to eliminate brokers and traders from the concentrate market. Prevent the reduction of steelmakers’ production.
The next thing to consider is the reasons for the need to monitor the implementation of notification quotas, in response to which it can be said: the executive guarantee of the notification table is the permanent supervision of the Ministry of Silence on the implementation of this quota, this monitoring includes obtaining a list of customers of mining units. Method to prevent the presence of non-productive intermediaries. In this regard, steelmakers must also act in accordance with the raw materials to fulfill their obligations to the market.
Regarding who is in charge of supervising the distribution of raw materials, it should be said that according to the announcement of this table by the Deputy Minister of Mines of the Ministry of Silence, this deputy and its expert body are expected to have full control over the distribution of raw materials.
*** The role of regulatory bodies and the judiciary in monitoring the distribution of concentrate and pellets
Another question that can be raised here is the role of the oversight bodies and the judiciary in overseeing the distribution of concentrate and pellets. The Deputy Minister of Mines of the Ministry of Silence has always considered supervisory bodies such as the Inspection Agency and the Attorney General to support their decisions, so it is necessary for the Deputy Minister of Mines of the Ministry of Silence to report violations by mining and steel units to the Attorney General. It called for more expensive selling and trading in the market.
Since March of last year, when the issue of steel chain pricing (concentrate, pellets and sponge iron) began and has continued to this day and no results have been achieved, we are witnessing mining companies trying to change the chain coefficients and increasing it against steelmakers’ opposition to changing the chain coefficients. . However, the uncertainty of raw material prices, especially concentrates, has led to inflammation in the market and ultimately has increased the price of concentrates exponentially.
*** Inflammation of the steel products market
Meanwhile, the turmoil in the market for steel products caused the Islamic Consultative Assembly to react to what happened and demand explanations from the head of the Ministry of Silence and the Deputy Minister of Mines. Among the issues for which members of the Islamic Consultative Assembly criticized the Ministry of Silence were the lack of price control, market turmoil and the sale of raw materials from the mines. It seems that one of the expectations of the members of the Islamic Consultative Assembly from the new Minister of the Ministry of Industry, Mines and Trade is to restore calm and balance to the market in all sectors from currency to steel. Because these two sectors directly affect the activities of many industries as well as the cost of products that are ultimately consumed by the general public.
It seems that meeting the needs of steel companies, which these days are named as front-line soldiers in the country’s economy and can help the country move towards a non-oil economy, is one of the important issues. Which should be considered by the authorities. On the other hand, due to the completion of the production chain by steelmakers, if their needs are fully met today, in the not too distant future we will see control over the prices of concentrates, pellets and sponge iron and the final products of steelmakers.
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