The issue of 10 Toman rebar will even be a joke to get rid of Iran’s steel economy. In recent days, this issue has been quoted by one of the country’s industrial officials in steel circles and has been circulated in a viral manner in the news networks of the steel field. From any point of view, this is a major threat to the steel market and the end consumer. In recent years, due to the activity of this analysis magazine, we have repeatedly talked and analyzed the pests of grammatical pricing. This is also the case. Unfortunately, the main pain is that at this rate, some traders are waiting for rebar exports to neighboring countries. This is not valid by any logic. In the following, we will evaluate this issue in more detail. Please be with Artan Press.
*** Government failure record in grammatical pricing
We will first look at the government’s decisions a little optimistically. Assuming that there is no news about the export of cheap steel and rebars, and this news is just a rumor. The policy of mandatory pricing and government intervention in industrial rates has become a threadbare policy. It seems that the new government has no plans but to repeat itself. In 1997 and 1998, when the government entered the market regulation of steel products and took serious interventions to reduce the price of steel products, a large amount of ingots were injected into the market. The result of this policy was the entry of more cheap ingots into the domestic market. This is already true for rebar. It seems that the 10 Toman rebar is at the forefront of new pricing. This policy will have no result other than the accumulation of capital in the hands of speculators.
*** Repeating the wrong path of the ingot for 10 Toman rebar
The government has once completely followed the path that it takes today for 10 Tomans for steel ingots. The result of the government’s ill-considered and unscientific policy for the country was that a bullion that could have been exported in those years at a price of about $ 400 per ton entered the domestic market at a price of $ 300 or less. In the current situation of the domestic market, there is no need for a sharp and unusual drop in prices. Consumers are less active in the market this season. This opportunity will allow traders to fill their warehouses with subsidized rebars and then market them at several times the price.
*** Threat of converting 10 Toman rebar into other steel products
In previous years, the cost of conversion was so affordable that it was worth it. For example, another consequence of this policy was that the ingot in the domestic market became rebar and the rebar was exported to neighboring countries at a price of about $ 350. What guarantee is there that they will not turn 10 thousand tomans of rebar into ingots and sell them to their compatriots at exorbitant prices on hot market days? What guarantee is there that they will supply the rebar at a lower price? Do not sell in foreign markets? What decision is there that we will not subsidize neighboring countries? This issue has arisen precisely at a time when household subsidies in the neighborhood have been cut off. 10 Toman rebar can destroy the achievements of Iranian steel production in the next six months.
*** Steel production in the energy crisis and flowers themselves
This is a very irrational decision in a situation where there was a shortage of electricity and energy. There are rumors in the market that the 10 Toman rebar is ready to be sent to neighboring countries as soon as it is approved. This is a great betrayal of the national resources of this country. As a result of government policies, a figure equivalent to $ 50 was lost directly to the final and intermediate steel products, while the basis of this unprofessional policy was to reduce and control the price and determine the order price of steel.
*** Reflection of the steel reporter’s quote from the export of 10 Tomans rebar
This issue was published without intermediaries and according to the steel reporter last night. He announced that we were discussing market issues in a forum; A respected person came and said that we have extensive construction for a neighboring country of Iran and I am looking for a sales channel that can meet the needs of our ribbed rebar. I mentioned the export of steel to the trader because of the return currency commitment from the export; Prohibited in accordance with the latest directives.
Unless it is a representative of the manufacturer or you buy a product from the export ring of the commodity exchange. But it seems that these issues are not considered a bottleneck in the current situation. Apparently the problem is the price. They stated that we demanded a price that the rebar manufacturer said in our response that such a price is not possible for us at the moment. The issue of 10 Toman rebar can severely damage the infrastructure of Iran’s industrial economy.
*** Creating rents with government involvement in steel market pricing
Reviewing this experience, it can be understood that government intervention only creates rents for some, and in the medium term, all links in the steel chain are affected by this type of intervention. Rebar in the best case can pull the price of 14 thousand tomans. At present, the price of 10 Tomans rebar does not correspond to any form of calculation. At present, the implementation of grammatical policies will have no other result. If the government intends to support the steel market and the consumer, it must reduce production costs; Not to stop production in the summer with orderly blackouts and the market to fluctuate.
*** Comparison of export rates of 10 Toman rebar and Turkish rebar
The rebar export rate is $ 660 / ton in Turkey. 10 Toman rebar for Turkey practically means offering free rebar for sale and use in this country. This issue should be handled so that the officials are aware of the catastrophe they have planned for. Imagine that some people are sitting on the other side of the border and are watching and listening to our domestic market and receiving and hearing the news sooner than we are. They are sitting in search of and waiting for this free rebar, so that the people’s treasury can take this water and soil and spend it across the border. For another nation.
*** The problem of price bubbles in the domestic market
We are in favor of fairness, rule and logic, not seeing and hearing such things and inevitably analyzing them. The price of the internal rebar is very clear that there is a price bubble. But there was no justification for supplying 10 Toman rebar to the export market. Our neighbors must buy the products of our factories at a fair price and in accordance with their true value, ultimately to counter the oppressive US sanctions; Finally, for example, 5% cheaper, not less.
*** Acquisition of Iran’s export markets by Turkey
The bullion is now $ 600 a ton in the Black Sea export market. About 10% of the production cost of the rolling field is that if we calculate Nimai with 23 thousand Tomans, the Rial equivalent of Iranian ribbed rebar should be exported at least more than 15,000 Tomans per kilogram (excluding value added) and not less. Export rates will be lower than this as a gift of production subsidies to neighboring countries. Now you can compare 15 Toman rebar with minimum price with 10 Toman rebar price in export dimensions. Surveillance systems are strongly urged to reverse this trend once and for all. There is no reason for these extravagances in the export market. Turkey has completely taken over the Iranian markets in Iraq and Kuwait this year.
*** Solve the legend of 10 Toman rebar; one time for ever
Neither unbridled prices are fair and reasonable. Both of these routes seem to be misguided. In the current situation, 10 Toman rebar is a candidate for price suppression. Some say that the domestic rate, if suppressed irrationally; From the door and visit of this country, Iranian steel is taken to neighboring countries, whether we like it or not; Like it or not. Well, we are not satisfied with this. This will be the treasury auction. Some are waiting to take Iranian steel to neighboring countries for free and less than its real value. Be aware that neither the people nor the sympathetic officials of this country; They will never allow such a current.
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