Rebar and cement prices underwent extensive changes in their pricing system last year. In recent months, however, the two markets have fluctuated widely. In this report, we will evaluate the challenge of the rebar and cement market. Earlier, two heads of state and a minister of the twelfth government promised to organize the steel and cement market, but unfortunately they could not act. It remains to be seen what could be the cause of the turmoil and the steady rise in prices. In the following, we will examine this issue in more detail. Please be with Artan Press.
*** Minister Samat’s promise regarding the price of rebar and cement in the coming days
In a recent meeting with the new Minister of Silence. He promised that the price of each bag of cement would reach 25,000 tomans within 15 days. The price of rebar should be completely organized in three periods of one month. These promises could not make much difference in the market due to what was heard from various officials in the past years. The challenge of the rebar market in the current situation is more serious than what has been covered in the previous news by various news agencies. The steady rise in steel market prices has led to the disruption of the market order for a significant period. We also saw this issue in the cement market. In previous weeks, the price of each bag of cement had reached more than 50,000 tomans. The power outage of the cement factories was the most important factor in this price event.
*** Fragility of rebar and cement price stabilization
While these days, various news are published about the growth of production of rebar and other low quality steel products. Concerns about the impact of these products on the credibility of the industry have increased. It does not matter that prices fall in the steel market alone. Iran’s rebar market suffers from low quality. The risk of purchasing by project managers has increased. The brittleness of the rebars in hand clips has called into question the credibility of Iranian steel production. On the other hand, we have witnessed this issue in the cement market. The decline in the quality of cement delivered to the market in recent weeks has caused consumer dissatisfaction. These issues can also have bad consequences in Iran’s export markets.
*** MPs’ comments on the steel market
But recent talk of rebar prices in the domestic market has a head start in parliament. Apparently, one of the members of parliament again ran away from the 10,000 Toman rebar and talked about it, which could not be cited. These conversations do not have the basis of correct and specialized logic in this field. This has caused the price atmosphere in the rebar market to be overshadowed.
*** Try not to give the wrong address to the end consumer
Our personal opinion is that on the one hand, we hear that the price of scrap iron is traded around 10 thousand tomans these days. On the other hand, the wise behavior of the central bank in the new government has shown that the government is interested in irrational currency fluctuations and cross-sectional fluctuations in the foreign exchange market and subsequent plowing of all markets; Especially the capital market; does not have. Apparently, it is currently considering the stability of the foreign exchange market. This will help the country’s steel markets to make real price discoveries regardless of exchange rate fluctuations.
*** Mismatch of ferrous scrap rates and rebar prices in the domestic market
Where scrap metal is traded for 10,000 Tomans and the base rate of steel supply in the commodity exchange is priced based on a specific mechanism, and nothing special has happened in the exchange rate market at the moment; Some unprofessional and non-expert talk and promises; In addition to giving the wrong address to the market, it will cause annoyance to some people and disrupt their business or production, and will probably cause losses to some people. This pricing path has also occurred in the steel and cement path and can mislead the consumer.
*** An important advice to economic activists and officials regarding the rebar and cement market
We strongly advise economic activists and officials to either refrain from stating any specific figures in the field of goods or if they intend to provide this information; Their promises should be coordinated with the Executive Ministry of Silence and with the details of the operational and principled solution in mind, and this will enable our informed people to have a correct interpretation and judgment. The steel and cement market is at the height of its inflammation these days. Any wrong pricing and incorrect signaling by the authorities can be costly for the market.
*** Ignoring baseless developments in the rebar and cement market
Designing such issues for us according to the basic propositions governing the current trend of the country’s economy and the price of rebar and cement; It does not matter as much as even most of the important and official media of the country ignored this issue without covering it. However, we are strongly interested in increasing people’s purchasing power and rationally reducing prices in the domestic market in all areas. But usually we do not involve our logic and calculations too much in such unrealistic statements. It should be noted that the steel and cement market is at the peak of its inflammation these days. We do not want to inflame the market path more than this. Therefore, we will not go into more detail than describing and addressing a mistake.
*** Price comparison in rebar market in Iran and UAE market
It is not bad to evaluate the steel market in terms of export prices. This issue can also be examined similarly for the steel and cement market. In the domestic market of Iran, 12 to 32 mm A3 rebar with a price of Rials equivalent to 577 dollars per ton of factory door is offered without 9% VAT.
The export price of rebar is $ 645 per ton FOB It is Iran. 8 to 40 mm rebar traded in the UAE market last week at a price of 2,420 to 2,610 dirhams, equivalent to $ 659 to $ 710 at the factory door. The Oman-based Jindal plant traded at 2,440 to 2,450 dirhams per tonne in the UAE. It seems that Iran’s prices are approaching the export markets of the region. All countries have steel and cement prices fixed in neighboring countries. It remains to be seen when this will happen in the Iranian market.
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