In this report, we will evaluate the latest developments in the steel market in the ingot sector. In order to be able to observe the behavior of the market in this area, we must have a look at the price of iron ore. Iron ore has seen a drop in prices in recent days. This area has declined in the domestic and export markets. This seems to be the most important factor in putting pressure on the price of iron ingots in the domestic market. In the following, we will further evaluate and analyze this situation. Please be with Artan Press.
*** Steel and ingot market developments in terms of iron ore prices
The price of Iranian iron ore exports in Bandar Abbas decreased by $ 3 on Friday. Depending on the size of the stone, this product has experienced a price reduction of up to 22.2%. Steel market developments in the steel ingot sector can have a significant impact on this issue. Since the drop in prices for lower grades is greater. It is likely that the internal steel ingot will be under more pressure. Iron concentrate fell 67% to 9% weekly, but grades of 66% and 65% fell less. It seems that the developments in the steel market in the last days will end at the expense of steel ingots.
*** The impact of exchange rates on steel market developments
Another axis that will overshadow the developments in the steel market in the ingot sector is the issue of the price of the dollar and the half currency. With Nima dollar in the range of 23,000 Tomans, the price of 66% carat iron concentrate is equal to 3,08 million Tomans. Taking into account 20% of export duties and domestic shipping and handling costs in the range of $ 20, the price of iron ore will reach $ 87.2 or 2 million Tomans at the head of the mine.
According to the price of steel ingots (13.5 million Tomans / ton), we reach a factor of 15% of the price of ingots. This figure is less than 16.5%. Therefore, the steel ingot market is also under pressure from the price of the dollar and the half currency. In other words, with a half dollar of 23,000 Tomans, the export of iron ore compared to domestic prices is not economical. The same issue will soon enter the steel market developments in the steel ingot sector.
*** Need to converge domestic rates with international exchanges
In order for Iran to be able to follow the developments in the international steel market, the prices of steel products must be in line with world prices. If the prices of steel products are lower or higher than world prices, Iran can not move in line with global demand. Iran has sometimes suffered a lot from the island state of its market. Sanctions have completely changed the course of developments in the Iranian steel market. Export markets must be able to keep pace with the global market. The situation of Iran’s ingot market is not short of iron ore and it can not expand in the market.
*** Rents and subsidies in the Iranian steel ingot market
The problem that has challenged the developments in the Iranian steel market is the issue of rents and subsidies in the domestic and export markets. The ingot market has spent a long time in the domestic market with price subsidies. Due to the current state of this field, we have witnessed the use of energy rents in this field. We cannot ignore the developments in the steel market by reducing current prices. Today, when the market is facing a drop in prices, ingot activists are talking about the uneconomical production and processing. This issue should be resolved as soon as possible. An issue that is very important in the steel chain is that the equality of interests in the steel chain should be the same and uniform, but this price ratio is not seen in the steel chain.
*** Heterogeneous profits are the result of steel market developments in recent months
In the final steel chain, some make more profit and some make less profit. For example, at the end of the steel chain, the profit is very low and in many cases the profit is even increased, but in other chains, the maximum profit goes to the activists in that field. At present, steelmakers make the most profit in ingots and slabs, and more than the rest of the chain, they benefit from steel sales profits, and the statistics of the last two years show the successful export performance of steelmakers. Steel market developments in the field of ingots have become a little worrying. Despite the good profits made in this area, we are witnessing a lack of kindness from manufacturers and suppliers. Activists in this field must adapt to the new conditions.
*** The role of currency and environmental crises in the growth of steel ingot prices
Due to the rising dollar rate of iron ore prices and electricity shortages in the country, the situation of steel prices depends on the new policies of the ministry. Turkey, for example, uses tariff leverage to prevent its imports from entering and hitting its own industry to produce its products. It seems that the developments in the steel market in Iran require cross-sectional control by the government. The price of ingots in the domestic market should be corrected by up to 20%. This trend will lead to the normalization of the trading atmosphere in the steel sector.
این مطلب بدون برچسب می باشد.