As we know, the steel chain consists of several parts that significantly affect each other. The imbalance in the steel chain has led to disagreements between the actors in different parts of the chain. As a result, prices, especially in the final commodity sector, have grown exponentially. The creation of these volatile conditions prompted policymakers to take steps to address the problems by creating balance and stability in the steel market.
In previous news published by the public relations unit of Hamiran Steel Company, we have referred to the actions of the men’s government in compiling the steel chain instructions. In light of the criticisms leveled at each section of the steel chain by the development plan, the government has called for meetings to amend the plan to ensure the full benefit of all parts of the chain. In the following, we will point out what points can be observed to help the best implementation of this plan.
Government oversight instead of government interference:
Past experience has shown that if the role of the government becomes more colorful with tools such as the imposition of government tolls and tariffs, the ground for rent-seeking will be provided more than ever. The purpose of this development plan is to distribute resources rationally among all parts of the steel chain so that rents are minimized and exports are boosted. In order to achieve this goal, the role of the government in the executive instructions should only be regulatory-supportive.
Full presence of steel in the commodity exchange:
Steps must be taken to form committees consisting of the Ministry of Silence, representatives of steel associations and stock exchanges, so that all influential sections can speak out about their requirements and demands.
One of the issues raised in the steel chain guidelines is that the supply floor of products in the commodity exchange be determined by the Ministry of Industry, Mines and Trade. But the best option is for the supply floor to be done by an expert team with accurate calculations. The fact that the Ministry of Industry, Mines and Trade wants to change the price every day will only cause fluctuations in the steel market.
Steel exports need support:
The proposed development of the steel chain stipulates that the needs of the domestic market must first be met and then the surplus must be allocated to exports. This guideline is only applicable when the Ministry of Industry and Mines does not determine the amount of steel injection in the domestic market. But this amount is determined by calculating the supply and demand of the market. At present, there is a committee in the commodity exchange that is a very good and reliable reference in this field due to its executive mechanism.
- last word:
• All our efforts at the national level should be to avoid the implementation of regulations that hinder the activities of producers. Because the implementation of wrong policies will discourage producers for industrial activities, and intermediation and brokerage activities will be strengthened, and as a result, we will see imbalances in all parts of the steel chain.
• Iran has the capacity to be present in the field of steel exports worldwide. In the export record of the steel industry, steel products have been exported to many other countries, which has also brought the satisfaction of the other side. As a result, it can be said that any instructions that limit the export of steel will face many challenges and bottlenecks in the future of the steel industry.
Steel exports will not be a threat to the domestic market because in previous years our exports have been much higher than this year and we have not seen any of these fluctuations. Fluctuations in the steel market are due to factors such as the growth of liquidity and capital of this product.