MSC is the only supplier of flat steel products in commodity exchange
Mining News Pro - Last month Iran’s ministry of industry, mine and trade released an instruction which made the Iranian steelmakers to tender their products in the exchange market.

According to the instructions, Mobarakeh Steel Company, West Asian Steel Company, and Seven Diamond Industry Co. must supply 67 thousand tons, 32 thousand tons and 15 thousand tons of CRC in the exchange market.

After 3 weeks, MSC is now the only supplier of flat steel products in commodity exchange. The other two companies did not supply any CRC in commodity exchange by now.

With the participation of other steelmakers and an increase in supply, market inflammation will certainly stop and prices will take on a real trend. This is while the violation from these instructions will have consequences and penalties such as cutting the raw materials of these companies.

Critics believes that the continuation of this policy will cause production decrease which leads to market inflammation and price jump. The consequences of such actions and policies will have negative results on downstream industries like consumers, carmakers and etc; also destroys their competitive markets.

Now the question is: What are the excuses of major companies like WASCO and Seven Diamond for the absence of their flat products in commodity exchange? Are these punitive policies effective for reducing the market inflammation?