Iron and Steel

Steel is discovered at the exchange rate

Steel is discovered at the exchange rate
Mining News Pro - A market capitalist said that it`s time to rely on the supply and demand mechanism, and within the framework of the stock exchange, the price of steel on the margin of the market is discounted and, as far as possible, go away from the price quotation.
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According to Mining News Pro - Al-Raz Bhagnay said the harshness to continue the current pricing policy in the steel market has ultimately led to a drop in the price of this product in the free market, but this is not a pleasure for smaller steel mills.

The expert in the capital market, pointing out that the fall in prices in the free steel market continues every day, and the ceiling for fluctuating steel prices on commodity exchanges has increased from 5% to 10%, he added. This means that the difference in rates between Free market and stock markets are shrinking more rapidly, meaning the cost of steel market liberalization on stock exchanges is decreasing.

He added: "This attraction attracts more attention to the market mechanism in discovering a higher rate, and if we are paying more attention to the formal approach of the formal markets and the contrast between supply and demand and the discovery of fair prices, then the current complicated conditions can easily be passed."

Commenting on the fact that in our country the volume of crude steel production exceeds domestic consumption, the expert said, "Unconsciously, prices in the steel market will be lower than global prices." On this basis, it seems that the time has come to find that the price of steel on the margin of the market should be discounted, and, as far as possible, from price quotations, based on the free market mechanism.

He said insisting on pricing the order of $ 4200 a dollar is a fact that has affected the steel and petrochemical markets and created a multi-faceted and uneven face. Accordingly, this situation does not benefit anyone, and only intermediaries exploit this irregular situation and pocket a lucrative rental.

The expert on the capital market continued: the announced base prices on the stock exchange for steel billets were about 2200 USD and for the rebar of 2420 USD, which, of course, allowed a maximum permissible price of 10 per cent in the current instructions. Meanwhile, in the open market, the price per kilogram of rebar is close to 4,000 tomans and the price per kilogram of bullion is estimated at 3400 tomans.

"The difference in rates clearly indicates that a tangible price rents between stock exchanges and the free market, ie buying from stock and selling in the market, means astronomical profitability of the intermediaries," he added.


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