The cement market has had unprecedented days in its trading history this summer. The price of the cement market went so far that one can hear talk of 70,000 Tomans per bag of cement in the sales market. The most important reason for the fluctuations and inflammation of the price of this building material can be considered in the continuous cutting of the price of production units. Because this year, for the first time, we saw this trend in electricity distribution. If the rains are limited in the second half of this year, it is likely that next year the living conditions of the people will be very critical. Environmental crises in the current situation will overshadow all markets. We will further evaluate this issue. Please be with Artan Press.
*** Take a look at the cement market rates this summer
In recent days, despite the continuous growth of cement prices, we are witnessing price adjustments in this market. The price of cement has decreased by about 30% compared to 2 months ago. Cement market rates have been declining more rapidly in recent days. The main reason for this is the colder weather in the whole country and the exit from the electricity crisis for the production units. On the other hand, regulatory bodies have also started working. Cements purchased from the stock exchange and the people who bought the cement were examined. This monitoring led to a downward trend in the cement market rate. We hope this decline will continue.
*** Remove brokers from futures trading in the cement market
By continuing this method, brokers will be removed from the cement purchase process and the price of cement will generally decrease to reach a reasonable price. The defective structure of the materials market in this test was rejected with a deplorable situation. With the power outage, the inventory practically fell into the hands of traders. This group was also looking for inflammation in the cement market rate. They were able to eliminate the price ceiling on this product during the two months of summer. The main government must plan for this problem from today. Warehouse inventory should be checked at the beginning of next year. Ignoring this structure of the materials market can lead to higher housing prices and worsening conditions in this sector in the long run by implementing the housing production leap plan.
*** The possibility of cement entering the commodity exchange
One of the issues that was able to quench the thirst of the cement market in the short term was the issue of cement entering the commodity exchange. This news may not have had much effect in the first instance. But it was able to moderate the cement market rate in the short term. According to the law, goods in the commodity exchange are excluded from pricing, and in other words, prices in the exchange are not orderable. In this regard, the important issue is that the policy of the Ministry of Industry, Mines and Trade has been determined and it is planned that while all products enter the commodity exchange, the ground for major buyers to refer to this market to provide the required goods.
*** The possibility of a definite price reduction in the cement market rate
Commodity exchange is a market in which the prices of goods are determined only on the basis of supply and demand, but in the case of cement products, like any other commodity, prices are expected to reach the announced rate according to the amount of production and growth of supply. It seems that the market will adjust in the future. If this happens, we will see a definite reduction in prices in the cement market rate.
*** Rapid growth in rebar and cement prices due to frequent power outages
In recent days, following the reduction or power outage of industries, including steel and cement factories, the products of these industries have become scarce or even scarce, while prices have risen sharply; Because traders, in the absence of the supervisor, take every opportunity to increase their profits, and this time, by riding on the psychological atmosphere of production decline due to power outages, have sharply reduced the supply of cement and steel products and increase their prices; This was at a time when the domestic cement and steel market was facing an increase in supply before the power outage due to a severe construction slump and export problems.
*** The great risk of housing builders depends on the production and supply of raw materials
One of the major risks of the construction market in the current situation has been the shortage of raw materials such as cement. At least this summer, this was clearly proven. Only the reduction or power outage of the cement and steel industries in the long run can cause a shortage of supply relative to demand, but the speculative nature of the market for these two products has caused a rapid reaction of cement and rebar prices to the recent event.
Although this issue can be resolved in the short term with the patience of builders and major applicants for cement and rebar, the essence of this story is a strong warning to those in charge of implementing the housing production leap plan, which seeks to produce cheap housing by calculations on paper; A plan that will ultimately double the cost of producing the entire housing of the country to realize the profit of construction material brokers. The price of cement market is highly dependent on traders and to solve this problem, we must look for its main roots.
the major applicants for cement and rebar to end, but the essence of this story is a strong warning to those in charge of implementing the housing production leap plan, who are looking for cheap housing production by calculations on paper; A plan that will ultimately double the cost of producing the entire housing of the country to realize the profit of construction material brokers. The price of cement market is highly dependent on traders and to solve this problem, we must look for its main roots.
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