Turbulent sheet market is not organized!

آشفته بازار ورق را سامانی نیست!


Advanced countries pay attention to the production of steel sheets because it is possible to produce thinner, stronger sheets with special alloy compositions, products with very high durability that have both relatively low weight and high usability.

According to the statistics of the Steel Producers Association, in 1398, 20 million and 182 thousand tons of steel products were produced in our country, of which 9 million and 960 thousand tons were steel sheets; in the meantime, eight million and 200 thousand tons of hot-rolled sheets, two million and 630,000 tons of cold-rolled sheets and 1,630,000 tons of coated sheets (including galvanized, tin-plated and colored sheets) were produced in the country (in total the total steel sheet produced, the effect of converting hot sheet to cold sheet and cold sheet to others Products have been removed). Most of these steel sheets are manufactured by Mobarakeh Steel Company (about 70%). This amount of production took place while in the pipe and profile industry alone, as one of the main consumers of steel sheets, a capacity of more than 20 million tons has been created. Other steel sheet consuming industries, such as home appliances and automotive industries, should also be added to the list, all of which have empty production capacity. The statistics of sheet production against consumer industries means that in this field the demand will always be more than the amount of production and the country’s sheet metal industry will not meet the volume of demand even with all its power and capacity.

Prior to 2015, part of the country’s need for steel sheets was met through imports, but this year, when the issue of supporting domestic manufacturing industries was raised and tariffs were imposed on imports of 20%, due to reduced economic imports, the main subconscious demand Paper consuming industries turned to domestic production. To this must be added the imposition of sanctions and the increase in the exchange rate in 1397, which further increased the growth of demand for sheets in the country. Thus, in the last two years, we have seen a significant increase in demand for domestic production in the steel sheet market.

In the meantime, the government, as the custodian and policymaker, has repeatedly entered into the issue of market regulation, and with every decision it has made in this regard, part of the chain has been in trouble. For example, in 1397, when the exchange rate rose, it kept the price of steel sheets on the commodity exchange artificially low to support consumers, which led to the distribution of rents and brokerage. This pricing has hurt manufacturers a lot. In this regard, it is necessary to mention other government segments in the sheet market based on the requirement of sheet buyers to supply their products in the commodity exchange. The government’s latest intervention in the steel sheet market dates back to late last year, when the government announced all steel sheet transactions in cash to curb sheet demand on the commodity exchange and prevent the final price of the product from rising. The delivery date was announced two to three months after the transaction. This means that the buyer has to pay the full cost of the product, which is to be delivered in three months, one to two months after delivery, and then receive the money from the sale a few months later! According to steel industry activists, this policy will only lead to the growth of brokerage and reduce the purchase of companies from the stock market. In fact, the adoption of this policy was considered a masterpiece of government performance in regulating the market!

Balancing the steel chain has been a long-held and perhaps unattainable dream. Manufacturers and consumers are left discouraged by government policies, while industrial solutions by industry activists include “continuous market monitoring based on supply and demand”, “government non-interference in pricing”, “liberalization of sheet imports”, “consumer development through activation”. Construction projects have been announced as the main consumers of the sheet, “” Return of futures and credit transactions instead of cash on the commodity exchange “,” Export development of sheet metal industry, sheet metal in the pipe and profile industries “and so on. Thus, in a situation where oil exports cannot be counted on, efforts must be made to find solutions to the challenges of the strategic steel industry, especially in the field of steel sheets, in order to develop the non-oil economy and create wealth for the country.