The parliament has recently proposed a scenario for the supply of cement in the commodity exchange. This plan in the community can help solve the problem of cement supply in the short term. But it can not play an effective role in discovering the real price of this product in the open market. It is necessary to think about the supply of electricity to the industrialists as soon as possible.
The iron ore market in all countries of the world has been waiting for the movements of the Chinese market for some time. Under these circumstances, the Chinese iron ore market has not reached a definite decision on the outcome of the price. China's iron ore futures are falling. But this price drop was not observed in this week's short-term trading.
The crude iron market is currently experiencing slight fluctuations in tonnage prices due to the general recession in the steel market. Stable prices in this area due to the trading behavior of the Russians. Russia is the largest producer of crude iron. It does not intend to sell cheaply in this area.
Steel market trading is stagnant enough. Now, due to the statement of the National Anti-Corona Headquarters, we are witnessing the closure of government offices, banks and markets in Tehran for six days. This could come as a short-term shock to steel prices next week. This is not good news for any sympathetic activist in the market.
Iran's steel ingot production in the first quarter of this year has exceeded 6 million tons. Isfahan Mobarakeh Steel is ranked first in this field with more than 40% of steel ingot production. Overall, the high export demand in this area has caused all producing countries to face the highest production growth.
The price of steel ingots in the export sector and the domestic market has increased significantly due to frequent power outages and distancing from production programs. Continuation of this trend can lead to irreparable economic losses for the Iranian economy. Due to the middle nature of steel ingot prices, price growth in this sector can lead to price growth in the whole chain.
In recent days, we have witnessed a doubling of steel supplies in a situation where demand in the steel market has approached zero. Except for a few large state-owned companies, there is no news of order registration in the commodity exchange. The free steel market is also experiencing a worse situation. The deep recession in construction is the main cause of this crisis in the steel industry.
Recently, the Parliamentary Industry Commission decided to include tax exemptions for some downstream steel industries. This position has been taken with the aim of monetizing
The 128 percent growth of Iran's steel exports is an issue that has attracted the attention of many market participants in the last month. Khuzestan Steel is unique in the production and export of steel and owes this to the change in engineering methods of production processes and pure thinking. Power outages, however, in the current situation is the biggest risk and obstacle in the path of Iranian steel production.
Iran's steel market has suffered serious damage due to power outages. Many manufacturers have fallen behind in their international commitments, and this has hit the Iranian steel brand. However, steelmakers are looking to divert the market to their preferred direction from power outages.