Deputy and member of Imidro’s executive board announced: The steel production capacity development company has been established in the Persian Gulf Special Zone up to 10 million tons. Naimi emphasized: This company has been formed with the presence of large mining companies and mining industries. Abbas Naimi, who spoke at the first monitoring session of the 10 million ton steel project in the Persian Gulf Mineral and Metal Industries Special Zone, clarified after presenting the report of the consultant of the comprehensive steel project: Qeshm, Hormozgan Steel, Valid International Investment and Imidro is active.

Recalling that the current production capacity of steel in the Persian Gulf region is 4 million, Naimi said: “According to the grand plan that we have ahead of us, 6 million tons of new production capacity will be created in this region.” Imidro’s deputy stated that with the formation of the investor company of the above project, from now on we will see more integration and alignment in steel development policies in the Persian Gulf region, said: At present, our concern is to choose the type of products in this project It will be produced in a way that will have the greatest benefit and added value for the steel industry and the country’s economy.

Addressing the consultant of the comprehensive steel plan, he said: by mid-November, a report on the final product option will be submitted. He emphasized: the type of technology and the scale of production equal to the standards of the day are the characteristics that Imidro, as a leader and a governing body, wants.

In this meeting, the executor of the project presented a report on the measures taken to study the objectives of the project, obtaining permits, receiving proposals from investors and determining the land required for the project and was discussed. In addition, the options related to the type of product were also examined and it was decided to present the final conclusion in the next meeting.

Factors affecting the steel market

Explaining that the biggest obstacle for producers these days is price fluctuations, the Director of Research…

A member of the board of directors of the Association of Steel Producers, said: the supply of steel by machining method should be completely eliminated and all steel products should be offered in the commodity exchange.

Reza Shahrestani in an interview with Mehr reporter said that one of the reasons for the turmoil in the steel market is the sharp difference between the market price and the commodity exchange and said: these turmoils include two sections of slabs and long sections. For example, a black sheet has recently been traded for 12500 Tomans, while its price in the market is 22500 Tomans. This difference of 10 thousand tomans creates a big rent.
Criticizing the supply of steel sections by machining method, Shahrestani emphasized: the supply of steel by machining method should be completely eliminated and all steel products should be offered only in the commodity exchange. Of course, it is stipulated that the supply of steel sections should be only in the commodity exchange.
He continued: eliminating the supply of steel by machining method takes 6 months, but with the plans made, all steel products will be offered in the stock exchange to be traded in a transparent and documented manner.
Referring to the false demand in the steel market, a member of the board of directors of the Steel Producers Association added: “Despite the production of 15 million tons of steel in excess of domestic demand, the devaluation of the national currency and the ban on exports has increased demand in the country.”
He concluded by pointing to the impact of steel prices on macroeconomic indicators: “One of the goods that can maintain a large amount of capital is steel, and therefore the demand for steel products in the country is very high.”
According to the Mehr reporter, matching or buying from the surplus commodity refers to a process during which, if the entire volume of the offered commodity is not traded in the commodity exchange trading hall, the remaining part and not traded, with the price Basic in the system …

With the election of Minister Samat after five months of uncertainty, there are different analyzes regarding the priorities of this ministry in the short time remaining until the end of the life of the 11th government. In Razm Hosseini’s speech in the parliament, only one sentence was enough to organize the steel market and prevent the sale of raw materials and the export of final products.

A member of the Presidium of the Industries and Mines Commission of the Islamic Consultative Assembly stated: “Export incentives exist at the beginning of the steel production chain, but these incentives should be at the end of the chain and we should gradually move towards exporting rebars, profiles and other sections.” The plan that we proposed to Minister Samat in the parliamentary commission and was welcomed was the transfer of export incentives to steel sections, which the ministry will prioritize.

Ali Jedi clarified about price control in the steel market: considering that the annual production capacity of the country’s steel is 30 million tons, but its consumption is reported to be around 17 to 20 million tons, the next priority of the Ministry of Silence in controlling the steel market The amount of supply of products in the commodity exchange. This member of the Industries and Mines Committee of the Majles, referring to the fact that the country’s steel should be offered on the stock exchange first, added: In other words, domestic needs are met and then exports are prioritized.

In the end, Jedi said: the amount of steel supply in the commodity exchange does not meet the needs of producers because a small percentage of products are offered in this exchange and this issue keeps the market thirst stable, which ultimately causes the uncontrolled growth of commodity prices up to 15% Be higher than the world price. This increase in the price of steel products has led to a jump in the prices of housing, cars and home appliances, which the Ministry of Silence should address with priority.

Iron ore
Iran Steel: Imported iron ore of 62% purity in China started last week at about $ 117 per tonne of dry CFR, but by the end of the week with the emergence of signs of continued economic growth in China and disruption and partial production of the Brazilian mining company Vale to The court ordered the price to be less than $ 124 per tonne CFR. So far this year, iron ore prices have risen 34 percent. Analysts consider the effect of this news to be a temporary decrease in production and believe that its effects will diminish by the end of the year.
In the Iranian export market, the latest price of 61% pure magnetite iron ore improved from $ 72.9 to $ 75.6 per ton FOB, and 61% Iranian pure hematite iron ore exported from $ 70.8 to $ 73.5 per ton FOB.

Scrap
Iran Steel: In the Turkish scrap import market, the continuation of the demand recession has lowered the price and the market outlook for the near future is declining. The last price of 20-80 heavy scrap last week was $ 289 per tonne CFR, down $ 4 a week. Meanwhile, some US scrap traders believed that the price drop would not continue next week because the domestic US scrap market is bullish.
Japan’s Class 2 heavy export scrap fell $ 6 to $ 259 per tonne fob. The average price of heavy imported scrap in East Asia was stable at $ 305 per ton CFR. In the US domestic market, shredded scrap improved by $ 3 to $ 283 per tonne.

بیلت
Iran Steel: The average price of CIS export billet last week decreased from $ 409 to $ 403 per ton FOB. Bids ranged from $ 410 to $ 415 per tonne FOB, but some were willing to sell for $ 405.
In Turkey, billets imported from the CIS ranged from $ 415 to $ 420 per tonne CFR, while buyers’ prices ranged from $ 410 to $ 415. Due to the recession, the billet scrap market is also facing a shortage of demand. Turkey’s export billet was stable at $ 420 to $ 425 per tonne FOB.
In the Southeast Asian billet import market, the price dropped by $ 5 and $ 445 per ton CFR was heard.
Billets in the Iranian market
Iran Steel: The price of ingots, which was 117713 Rials on Sunday, reached 118525 Rials by the end of the week, while there was no news in the sections market. The reason for the increase in the price of ingots was the increase in the price of sponge iron, which was at least 58,000 Rials base and up to 60,000 Rials base. Another reason for the increase in the price of ingots was the rise in the price of currency and its impact on the export price. Last week, iron ore rose again, helping to improve Iran’s ingot exports.

مقاطع
Iran Steel: Last week, CIS export rebar was stable at $ 460 per ton FOB. In Turkey, rebar exports were $ 455 to $ 460 per tonne FOB unchanged, and last week’s drop in scrap prices has not yet affected the price of sections. In Southeast Asia, imported rebar was stable at $ 465 per tonne CFR. In China, the price of export rebar fell by $ 2 to $ 483 per tonne fob.
Also in the European domestic market, rebar was recorded at 455 euros per ton of factory doors, which increased by 2 euros. In the US market, the $ 605 rebar per ton of factory door shorts remained unchanged.
Sections in the Iranian market
Iran Steel: The price of sections had an upward trend. Rebar, which was priced at 126449 Rials on Saturday, reached 130605 Rials by the end of the week. The base price of rebar on the stock exchange faced an increase in the price floor, and this led the market to increase the price by the stock exchange. Otherwise, the market would not change, and of course, the root of the increase in rebar prices was due to the increase in the price of ingots. In any case, the stock market, along with the exchange rate, gives a price signal to the market, but what is significant is the volume of trades, which is getting smaller every day.
The beam had a downward trend and reached 147667 Rials from 149667 Rials on Saturday. The reason for the decrease in price was that the beams sold in June and July, which were delivered in September and were purchased at a cheap price, came to the market, but with the guidance of Zobahan, the fall in price was temporary and slow.

ورق
Iran Steel: CIS hot rolled sheet exports rose from $ 510 to $ 495 to $ 510 per tonne FOB last week. Imported hot rolled sheets in Turkey dropped $ 5 to $ 520 per tonne CFR.
The average price of Chinese hot-rolled sheet exports fell by $ 3 to $ 503 per tonne FOB. Imported hot rolled sheets in Southeast Asia also fell from $ 530 to $ 515 to $ 520 per tonne CFR.
In the European domestic market, hot-rolled sheets rose by € 8 to € 499 per tonne. In the US market, hot rolled sheet also improved by $ 2 to $ 603 per ton of factory door shorts.
Sheets in the Iranian market
Iran Steel: The price of 2 mm thick hot rolled sheet was 210,000 Rials on Saturday in Isfahan and 218,000 Rials on Wednesday. The reason for the rise in prices was supply constraints and an increase in the exchange rate. Sheets of 3 to 15 mm increased from 168250 Rials to 171688 Rials. The increase in the price of these goods was due to the increase in the price on the stock exchange, although the supply is strictly controlled. Auxin sheets had an average price of 161,750 Rials on Saturday, which reached 170,250 Rials by the end of the week. Restriction of auxin supply is the main reason for this price increase. In previous weeks, the price of auxin sheet with rebar was very close, while due to the difference between the price of slab and ingot and more importantly the cost of sheet production should not have happened. With the increase in the price of slabs in the stock market, this gap was practically repaired. Due to the increase in the price of rebar, it is natural that the auxin sheet still has room to increase.
Kavian sheets filled the same trend similar to Auxin, despite the size limit, the price of this product increased from 144,500 Rials to 151,000 Rials at the end of the week.
Cold sheet, which was priced at 283909 Rials on Sunday, reached 292000 Rials by the end of the week, as well as galvanized sheet increased from 261200 to 278438 Rials.
Common reasons for the price increase are the uptrend of intermediate steel and the increase in the exchange rate. The main problem of intermediate steel is the pellet problem, the supply of which is facing many ups and downs this year. What influences the weekly changes is the exchange rate, but the long-term trend caused by the problem of raw material supply is still present, even the issue of exchange rate returns over a six-month period will not decrease the price of the product for many reasons.

 

Source : Steel Center

The World Iron and Steel Association reported an 11.3 percent increase in Iranian steel production in the first eight months of this year and a significant drop in steel production in industrialized countries such as the United States, Germany, France, and Canada. According to Tasnim news agency, the World Iron and Steel Association in its latest report announced an increase of 11.3% in Iran’s steel production in the first eight months of this year. Iran’s steel production, which was reported at 16.739 million tons in the first eight months of 2019, has increased to 18.625 million tons in the first eight months of 2020. Iran’s steel production grew by 11.3 percent during this period, despite US sanctions, while many industrialized countries have seen their steel production plummet due to the corona outbreak. US steel production in the first eight months of this year fell by 19.8 percent and German steel production in this period by 16.5 percent, France by 27.6 percent, Britain by 5.7 percent, Canada by 16.5 percent, Japan by 19 percent, Saudi Arabia by 3.3 percent. Qatar fell 18 percent, Qatar 47.1 percent and India 18.8 percent. Total world steel production from January to August this year fell by 4.2 percent compared to the same period last year and reached 1187 million tons.

Iron ore
Iran Steel: With rising tensions between the United States and China, the price of imported pure iron ore fell 62 percent last week to $ 3, reaching $ 108 per ton CFR. Of course, given the high demand in China, this price drop had a positive effect on the volume of purchases.
On the other hand, the high supply of iron ore market has put more pressure. China’s port iron ore inventories rose to 3 million tonnes last week.
In the Iranian export market, the latest price of 61% pure magnetite iron ore was about $ 66 and 61% pure Iranian hematite iron ore was about $ 64 per ton FOB.

Scrap
Iran Steel: Last week, the average price of 20-80 heavy imported scrap in Turkey increased to $ 10, and $ 270 per ton CFR was recorded. The price of steel products in Turkey is growing faster than the price of scrap, so some US suppliers were looking for $ 275 per ton CFR.
Japan’s Class 2 heavy export scrap improved by $ 7 to $ 224 per tonne FOB. The average price of heavy imported scrap in East Asia rose $ 10 to $ 267 per tonne CFR. In the US domestic market, shredded scrap of $ 235 per tonne remained unchanged.

بیلت
Iran Steel: Last week in the Turkish billet market there was a significant price increase due to the growth of the scrap market. Of course, the Turkish domestic market is active and the import and export markets are silent. Billets rose $ 5 to $ 10 in the domestic market, reaching $ 405 to $ 410 per tonne.
Billet CIS rose $ 5 to $ 10 in Turkey, reaching $ 400 to $ 405 per tonne CFR, but the highest asking price was $ 390 per tonne CFR.
In Asia, China remained the largest buyer of billets, but demand is likely to ease slightly, given rising tensions between the United States and China and falling futures markets. The last Chinese purchase for Russian billet was $ 412 per ton CFR, and Indonesian billet was bought at $ 425 per ton CFR. Billet fell to $ 3 in Chinese futures markets.
Last week, prices in the Southeast Asian billet import market rose from $ 405 to $ 410 to $ 420 per tonne CFR.
Billets in the Iranian market
Iran Steel: On Saturday, the price of ingots was 103038 Rials. With the exchange rate falling on Monday, the market collapsed. Everyone was waiting for the supply of ingots in the commodity exchange on Tuesday, but due to the lack of supply of ingots in the commodity exchange, the market went its own way. All eyes were on the stock market on Wednesday. On Wednesday, the price of ingots reached 91563 Rials, while some ingot production units offered less than 90,000 Rials per kilo. Meanwhile, the supply of sponge iron is still facing problems, but the decrease in the price of ingots stopped trading and this helped lower the price of sponge iron, so much so that the middle product with a base price of 49,500 rials was heard, which is at least 1,000 compared to last week. Rials show a decrease. With the fall of the dollar price from 26000 Tomans to 22000 Tomans, the market went into a coma, but on the other hand, last week the quarterly performance of steelmakers was announced and their meetings were either held or are being held. Steel production and export statistics in the last 99 weeks were announced شد. Accordingly, exports of sponge iron decreased by 91%, ingots by 7%, slabs by 61% and other steel products by 49%. The largest decrease in exports is in sponge iron, while the production of sponge iron in the quarter increased by 99% and reached more than 8 million tons. Therefore, despite the increase in the production of sponge iron and the decrease in exports along with the decline in domestic demand, we have seen an increase in prices over the past three months. What is very significant among the announced statistics And sheet. The production of Khuzestan steel ingots has sharply decreased. Sponge iron is in a worse situation. In the first quarter of 1998, Khuzestan Steel produced 3.721 million tons, while in the first quarter, it produced 99.005 million tons. Therefore, Khuzestan Steel faced a decline in production, while the company’s net profit grew by 5%. Marks. The same is true for Mobarakeh Steel. According to the data of Mobarakeh Steel, the production of this factory has covered 27% of the program. In fact, Mobarakeh Steel is more than 70% behind its production plan, according to the statistics published by Mobarakeh Steel. Slab production of 70% hot plate is 73% and cold plate production is 75% of the rear production program.
The decrease in the price of currency helped to lower the price of round bars in the domestic market, but this issue disrupts the relationship between steel exports, because as the price of currency decreases, the rial receipt of the exporter of round bars decreases.

There are two glances in the market:
At first glance, the stronger one expects prices to fall slightly and remain at the same level. The group argues that the exchange rate is falling and demand is falling, both in the domestic market and for exports. This view is based more on the government’s behavior curve over the past years. The group believes that prices will return, but the period will require a one-month break. In fact, they believe in a U-shaped market reform.
The second view believes that the depreciation of the exchange rate on the one hand will lead to a rapid decline in exports, as a result of which the exchange rate will rise again, and this will quickly push the market upwards. V-shaped market correction
Both groups agree on the following:
First, the shortage of raw materials due to production difficulties
Second, the need for exports, especially in the middle steel sector
Third, the very low efficiency of capacities in the final product sector
Fourth, the increasing trend of monetary base volume
Fifth, the need for the profitability of the steel industry to maintain the stock market
Therefore, the return of prices is quite justifiable according to the above, it is only a matter of time.
Last week, two major events took place in the commodity exchange market. First, buyers had to deposit 50% of their demand in advance to the broker’s account.
Second, the supply will stop on Tuesday, so the ingot producers will supply their ingots next week to solve the liquidity problem, but after that, the volume of ingot supply will be dependent on the supply of sponge iron and scrap during the last month, when sponge iron is limited. Faced with supply, some ingot producers have turned to the waste market, and this has led to an increase in the price of waste up to 7000 Tomans per kilo of factory door delivery to the buyer. With the decrease in the price of ingots, the price of waste also went down, but as the production of ingots increases, the price of waste will rise again in the coming weeks.
The market is well aware of the oscillations because it has experienced it many times, so the argument that prices will return is quite reasonable, especially since a fall in market prices will cause the stock price to fall, and steel producers, who are also highly regarded by the government. They do not like it, but the tense days of the past month are not really in anyone’s interest.

مقاطع
Iran Steel: By the end of last week, CIS export rebar had improved from $ 410 to $ 415 to $ 420 to $ 430 per ton FOB. In Turkey, rising rebar scrap prices have risen. The export bid rose $ 10 to $ 430 to $ 435 per tonne fob. In the domestic market, rebar grew to $ 15, and $ 435 to $ 440 per tonne was heard at the factory door.
In Southeast Asia, imported rebar remained unchanged at $ 425 per tonne CFR. In China, the price of export rebar rose by $ 5 to $ 470 per tonne fob. By the end of the week, however, rising tensions with the United States had pushed up Chinese rebar futures to $ 8.
In the European domestic market, rebar was 438 euros per ton of factory door and stable. In the US market, rebar remained unchanged at $ 565 per ton of shorts.
Sections in the Iranian market
Iran Steel: The average price of rebar on Saturday was 110429 Rials, reached its peak on Sunday and hit a record 114167 Rials, but after that the price of round bars began to decline until Wednesday to 103000 Rials per kilogram of the market was closed. Isfahan, which averaged 141900 Rials on Saturday, reached 143667 Rials on Sunday, but then started to decline and decreased to 132833 Rials. Beam was announced very late on Wednesday, but the volume of purchases of each buyer in the commodity exchange decreased sharply, so the commodity exchange gave the market the signal that firstly do not expect the price of ingots to decrease and secondly that the government manages the cross-market . The most important signal that has been given to the market and is now visible to everyone is that steel control is in the hands of the government and the market acts only as a hotbed. What is seen in market prices is the result of government decisions and behaviors. Its construction costs have been reduced to a minimum, and in the last year of Mr. Rouhani’s presidency, he has not lost money in the budget due to the decrease in steel prices, so he does not have a significant share in government spending. Government revenues will be reduced. Therefore, at the macro level, falling steel prices to the extent that it does not disrupt the export relationship is not an obstacle in the eyes of the government. The government’s solution is to limit domestic demand and help exports. Raising the price of foreign exchange In recent weeks, we have seen that the supply of foreign exchange for many goods has stopped and the import of cosmetics has been banned.

ورق
Iran Steel: CIS hot-rolled sheet exports last week were $ 400 to $ 415 per tonne FOB. Hot imported sheets in Turkey increased from $ 405 to $ 425 to $ 415 to $ 425 per ton CFR.
China’s average export price of hot-rolled sheet rose $ 10 to $ 478 per tonne fob. Imported hot rolled sheets in Southeast Asia improved from $ 440 to $ 443 to $ 450 to $ 455 per tonne CFR.
In the European domestic market, hot rolled sheet was improved by 4 euros, recording 405 euros per ton of factory doors. In the US market, hot-rolled sheet dropped $ 3 to $ 456 per tonne at the factory door.
Sheets in the Iranian market
Iran Steel: The price of 2 mm thick hot rolled sheet was 181,000 Rials in Isfahan on Saturday and 165,000 Rials in Ahvaz and reached 155,000 Rials in Isfahan on Wednesday. Hot sheets with a thickness of 3 to 15 mm of Mobarakeh product, which was priced at 152063 Rials on Saturday, decreased to 133625 Rials on Wednesday. Price drop was also seen for Auxin products with a thickness of 10 to 40 mm and the average price increased from 166,500 Rials to 153,000 Rials, while the limited supply of auxin maintained the price reduction ratio of Auxin compared to Mobarakeh Steel. Kavian Steel only for three sizes 15 to 25 Mm was offered, the average of which was 137667 Rials on Saturday, but it dropped to 135000 Rials by Wednesday.
Cold sheet thickness of 0.40 to 2.5 was 228545 Rials on Saturday, but dropped to 216000 Rials by Wednesday. This trend was also seen in the case of galvanized sheet and decreased from 237325 Rials on Saturday to 226325 Rials. The downward trend in prices is only due to the prevailing psychological atmosphere in the market and there is no other reason for it. The paper was also unveiled on the stock exchange on Wednesday afternoon. Accordingly, the factories that receive slabs are obliged to list their sheets in the stock market, because these units are very different from each other in terms of structure and on the other hand, they have problems in terms of financial statements, and this does not allow them. To offer their product directly on the commodity exchange, they should look for a solution to sell their sheet through the slab supplier. Understanding the two factories is simply not possible as many sheet rolling mills rely on private sector capital. Their dependence on companies such as Mobarakeh Steel and Khuzestan Steel will increase government interference in the steel market.
In the future, we will see that collections that have a good relationship with the upstream factories will benefit as much as we have seen in the Auxin experience over the past year, but other factories will suffer. On the other hand, the market for galvanized sheets, pipes and profiles will be in disarray in the coming weeks because their raw materials are no longer supplied through traditional means and they have to look for new methods.

Source : Iran Steel News Website

 

 

Razieh Ahghaghi: The trading ring of the Commodity Exchange and the open market of ingots and steel products has witnessed unprecedented inflammation in recent weeks. While experts assess the role of exchange rate increases in the occurrence of these significant inflammations, market participants believe that the instability of the supply of ingots in the trading ring of the commodity exchange has had a significant impact on price increases. On the other hand, these two groups of producers active in downstream industries are also dissatisfied with the non-observance of the supply floor by the middle part of the chain (ingots) and believe that reduced supply has caused shortages in the market and downstream industries to buy ingots in the open market at high prices. they have to.

The calculated statistics also indicate the fact that the level of competition for the purchase of ingots has also increased. But in the meantime, steelmakers also offer their reasons for reducing the supply of ingots. Ali Mohammadi, CEO of Khuzestan Steel, as the largest producer of ingots in Iran, says: “On the one hand, all steelmakers expect to stabilize the domestic market by increasing the supply of ingots in the trading ring of the Commodity Exchange, and on the other hand, given the currency conditions, it is expected that With the growth of exports, we will have more currency. Explaining the roots of the steel market crisis, he explains: “The price of domestically supplied steel ingots is much lower than the world price of this commodity. There are many applicants in this market, so the more supply there is, the more demand there is.” He emphasizes: Achieving balance is not possible in these circumstances. The Market Regulation Headquarters and the Ministry of Silence should not think that the market shortage can be overcome by putting pressure on a few companies. Read the interview with Ali Mohammadi, CEO of Khuzestan Steel.
How is the supply of steel ingots from steel companies in the trading ring of the Commodity Exchange determined? Is there a legal requirement for supply?

The supply floor of each production unit is always determined by the upstream organizations, including the market regulation headquarters, and is announced to the producers. Companies also adjust and execute the supply in the coming weeks according to this plan; So that finally the supply of their product within a month is determined according to the supply floor. According to the regulations, production units must comply with the amount of floor set for supply on the commodity exchange according to the program of the market regulation headquarters.
So what has made it difficult to achieve this goal?

Manufacturers of steel ingots are currently facing the problem of conflicting expectations of exchange rates and meeting domestic demand. That is, while steelmakers are expected to increase the exchange rate by increasing exports, they are also expected to meet the needs of the domestic market. The sum of such a contradiction, while impossible, also disrupts the plans of the complexes.
How reasonable do you think the supply floor set for steel ingot producers for supply in the commodity exchange ring is?

The amount of supply floor set for companies is not logical in two ways. The first aspect is discrimination and the difference between the supply requirement of manufacturing companies, while since 1997 Khuzestan Steel has been obliged to offer 60% of its ingot production in the commodity exchange, while other steelmakers offer only 20 to 30% of their products in the trading ring Goods have been required. Another issue concerns the total supply, which is beyond the total needs of the market. While it is claimed that the supply of ingots in the commodity exchange is low and does not meet the needs of the market, but we believe that this is not the case and the abnormal increase in demand due to price rents is hidden in the supply of steel. Efforts have been made to address these issues over the past two months. Note that increasing the supply in the domestic market leads to a decrease in the export potential of producers and ultimately to the detriment of the country’s interests.
To what extent has the growth in the price of bullion trading on the Commodity Exchange in recent weeks increased the desire of steel producers to supply the domestic market with respect to exports?

Naturally, the realization of the price in the trading ring of the commodity exchange increases the tendency of steelmakers to offer the product in the commodity exchange. Although the price of ingots in commodity exchange and open market transactions has increased in recent weeks, but since the supply of this product from the domestic market is still much cheaper than its import, there is still a demand for brokerage intermediaries for ingots.
That is, if the price becomes real in the domestic market, will your supply increase?

Note that even if the price of ingots in the trading ring of the Commodity Exchange equals the export price, including the currency, steelmakers will not be able to offer their entire product in the domestic market; Because according to the currency conditions of the country, a part of the products should be allocated for export and its currency should be returned.
With this in mind, what program do you think the Ministry of Industry, as a policy maker, can consider to regulate the domestic and export sales of steel companies?

Fortunately, today some officials of the Ministry of Silence are aware of the importance of exports, planning and marketing, and do not allow the long-term export planning of producers to fluctuate as in previous years. But there is always the fear of export bans for production units, especially in companies with export infrastructure. These companies have been spending years building export infrastructure, and any ban could hurt them and their long-term export plans.

Steelmakers established near the high seas have made significant investments in exports and have been building export networks in recent decades. Requiring these companies to supply domestically means wasting these export funds In this situation where the production units are required to be offered in the domestic market, if the prices are the same as two months ago, the producers will suffer greatly and the profit of this chain will go to the pockets of the brokers’ brokers.

http://tnews.ir/site/051b168693896.html

Tehran – IRNA – The country’s steel industry, with a history of more than half a century, today ranks first among competitors in the Middle East in terms of production and exports, and is expected to reach seventh place from 1404 from the 10th world level with the promotion of the position.

According to the Comprehensive Steel Plan, the major producers of steel in the Middle East are Iran, Saudi Arabia, the United Arab Emirates and Qatar, with a share of about 25 percent of our country’s production of about 25 million tons in 2018.

Although the latest statistics of the Deputy Minister of Mines and Mining Industries of the Ministry of Industry with the Iranian Steel Producers Association regarding the performance of 1998 have a difference of one million tons, but it does not create a gap in our country’s position in the region.

The Ministry of Industry announced a total of 28 million tons of steel production last year (according to the Deputy Minister of Mines) and the Iranian Steel Producers Association at 27 million tons.

Statistics show that Saudi Arabia is 15 percent more productive, the UAE is 9 percent and Qatar is 7 percent, far behind Iran.

Most consumers in the Middle East

According to the study of the country’s comprehensive steel plan, Iran, Saudi Arabia and the UAE, in addition to being the largest producers of steel in the Middle East, also have the highest consumption of steel.

The fact is that the three countries in the Middle East (Iran, Saudi Arabia, and the United Arab Emirates) account for more than 70 percent of steel consumption in the region.

Iran accounts for 38 percent of consumption, Saudi Arabia 21 percent, the UAE 15 percent, followed by Iraq with 6 percent and other countries with a total of 20 percent.

Steel exports

According to 2017 statistics, the crude steel exports of Russia, Brazil and Iran, Ukraine and Japan were the highest recorded, with Iran’s share reaching 6,873,000 tons.

In the early 1990s, Iran imported an average of five to seven million tons of steel imports, including ingots and steel sections, but today it is considering a 40 to 45 percent share of production for export.

Export statistics for the year 1998

The issue of steel exports is also a statistical difference between the Ministry of Industry and the Iranian Steel Producers Association. The Ministry of Export Statistics announced more than 9 million tons (ingots and steel products), but the association said in a letter in May. Addressing the Minister of Industry, he wrote that for export concerns, he mentioned last year’s performance of 11 million tons.

Landscape horizon 1404

Official statistics from the Ministry of Industry on the 1404 Vision Export Plan show a figure of 14 million tons, which is optimistic if the construction and housing sectors continue to be in recession, but the National Housing Project plans to build 400,000 units. On the agenda, can boost domestic demand.

According to the vision document predicted in 1404, the amount of steel exports in the form of ingots of seven million tons and the same amount of steel sections to be exported.

 

www.irna.ir/news/83779076/

China has imposed tariffs on US and European steel

China’s Ministry of Commerce announced Saturday that it will impose anti-dumping duties on steel pipes imported…