Mining News Pro - Hormozgan Steel Sales Director said: "In all advanced economies, prices are determined on the basis of supply and demand." Basically, stock exchange is also formed for this purpose. The stock exchange is created to discover the price. If the price is determined in an orderly manner, the existential philosophy of the stock exchange will be eliminated and, in fact, we will roll back to the time before the stock exchange is established.
According to Mining News Pro - Mahmoud Shakirzadeh, director of sales and marketing of Hormozgan Steel Co., said: Hormozgan Steel considers its first priority to meet the needs of the domestic market and we have provided surplus on domestic demand to world markets. Last year, with the increase in production, we were able to increase the supply of the product to the domestic and foreign markets. Due to the fact that Hormozgan Steel is near free waters, we enjoy the export advantage.
"The serious challenge we are facing now is the new directive of the Ministry of Industry, Mining and Trade," he said. Based on this pricing guide, steel products are ordered in an order and based on a formula at a rate of $ 4,200. Also, we are required to provide a significant amount of our products to the domestic market, without considering a company like Hormozgan Steel has an export-oriented nature. Do not even consider whether there is a real demand for the supply of the product inside it or not?
He continued: In all advanced economies, prices are based on supply and demand. Basically, stock exchange is also formed for this purpose. The stock exchange is created to discover the price. If the price is determined in an orderly manner, the existential philosophy of the stock exchange will be eliminated and, in fact, we will roll back to the time before the stock exchange is established. When the price is set to the order and the competition limit is 5%, the question arises as to why the commodity exchange has been established. Stock exchanges have been created for real price discovery. In this way, stock exchanges have also been questioned.
He added: "We also faced with a surplus of steel supply in the domestic market last year. When there is no real demand in the domestic market, it is not correct to force steel makers to supply products in the country instead of exporting them. Interestingly, they say they have to supply 120% of the last year on the market. Only here is 20% of the surplus.
"Another problem is that in the orderly pricing, the whole steel chain from iron ore to the final product, such as profiles or cars, etc., is not considered, and the ordering pricing does not include steps before and after the steel mills," said Shukrin Zadeh. While, if priced, it should include all steps. Both the producer and the final consumer are affected by the current method. Only brokers have benefited. Now, in an order for our slab, we have a price that is equal to the price of steel scrap. This policy has created a market imbalance.
On the other hand, he said, restricting steel makers to exports while the country needs export and foreign exchange because of oil sanctions. The desire of senior officials of the country, both from petrochemical companies and steel makers, is that they must export. Steel makers have entered the global markets well over the past years, and we have to keep in mind that if we lose those markets, it will be very difficult to regain, especially in terms of sanctions.
Hormozgan Steel Sales Director responded to the claim by the activists of the pipe and profile industry that exporting steel is also a kind of crude, and if steel products are available to them, they can export the final products with much more value and value, said: The claim has so far not been proven for anyone, including the decision makers of the country. Manufacturers of pipes and profiles tell how much steel products they have received in the form of finished products? Export statistics of steelmakers are quite clear and transparent. Manufacturers of pipe products and profiles also provide accurate statistics on their exports.
Shukrin Zadeh Zadeh said: steelmakers are currently supplying their raw materials on an open exchange basis while they are forced to sell their products at government currency prices. This imbalance will increase production costs and reduce production and ultimately closure of steelmaking companies.
At the end, he emphasized: "We ask the officials of the Ministry of Industry and Commodities, when they make a decision, they must hear the comments of the producers, then formulate the guidelines.