As you know, this plan has had its opponents and supporters. Among them are steel export activists who oppose the plan without reform. Another protester is the head of the Tehran Chamber of Commerce, who has called for a meeting to reform the steel chain development plan in the presence of all influential steel market activists, members of the Chamber of Commerce and government representatives. After the protests of various groups, the Vice President for Economic Affairs prepared the ground for a meeting with all the influential institutions and organizations in the steel industry.
Review of steel chain development plan reform session:
In this meeting, a consensus was reached that changes should be made in the steel chain development plan, and all the institutions present expressed their views on the reform of this plan. In the end, it was decided that the economic deputy would present all the opinions raised to the government, and after its approval, a working group would be formed to implement this plan, which would be approved by all those present at the meeting.
Sensitivity of steel price determination:
In this meeting, it was decided to make changes in determining the price based on the world rate and all steel products to enter the commodity exchange. In the field of price determination for induction smelters, a mechanism for price determination should be specified. Because as long as the price of their products is ordered, we can not expect good feedback from the implementation of the steel development plan guidelines.
Also, if the price of steel is determined on the basis of the half currency, this rate is significantly different from the world price of steel and will cause large rents in the market. The result is that domestic production will be hit by this price difference and the business environment will be disrupted. It should be noted that this imbalance will also spread to the capital market.
Regulatory body and brokers:
One of the main gaps in the steel market is the lack of a highly enforceable regulatory body. One of the main needs of the steel market is the supply of raw materials such as pellets and concentrates. But we see that traders easily buy and sell these items. Unless this authority is taken from the brokers by the regulator, it can not be expected that the establishment of policies in this direction can be effective and will inevitably cause rents and imbalances in the steel chain.
Steel and Commodity Exchange:
Kalazir Exchange has a good structure for transparent transactions and if it is implemented properly, the allocation of resources to industries will be done properly. Private sector activists also believe that with the supply of all steel products on the commodity exchange, market supply and demand will determine prices. On the other hand, for the products offered in the commodity exchange that have faced a surplus, a solution should be considered to be removed from the exchange, because most of the factories that meet the needs of the domestic market, the issue of liquidity is very important to them.