Advantage of Steel Industry Entry into Commodity Exchange

The entry of steel into the stock exchange had two main advantages: it was the approaching prices to the margin of the market and the continued transfer of profits from intermediaries to production, which was the reason for the privatization of the steel industry in the country. Dr. Bahram Sobhani, head of the Iranian Steel Producers Association, said: Before the Commodity Exchange was launched in August 82, Steel was priced through the Ministry of Commerce, which led to a significant price difference between the price of the factory door and Market floor prices are created. This situation has led brokers to buy tricks from the Department of Commerce for purchase so that they will sell at low prices and sell at high prices on the market. Eventually, the profits of this transaction were equal to the value of the entire goods that the brokers received, and the producers did not only benefit, but also suffered. Bhramam Sobhani stated: Since the beginning of the year of the year 82, when the stock exchange was launched and the supply mechanism Bourse and price discovery were the result of competition between buyers, the price of iron and steel products rallied from grammatical prices to marginal market prices, and as a result, the profit that had previously reached the pockets of intermediaries reached production and producers . This return on profits to producers has led companies to continue their path of development and implement many initiatives in this regard. They also increased their production capacities and, as a result, stimulated the private sector to enter the steel industry, and they also joined the group of producers. Today, it is safe to say that the steel industry is in the hands of the private sector.

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