Four Challenges of Iran Rebar Market

He stated that “In the various meetings that we have had with the managers of the country`s rolling and floating units during the past year and this year, it has been clear that regardless of the root cause rebar market problems, which is recession of demand and construction, the four main challenges in the market`s imbalance play a crucial role.

• The first one is capacity surplus, which is more than double the demand.
• Second problem he stated is insufficient supervision over the quality of the production rails of various factories, the main factor in this regard is lack of mandatory standard billet.
• Third most effective factor in creating the current status of the rebar market is unplaced sales by some ingot mills that have led some rolling units to survive and maintain production and employment into the billet market without a factor and a negative rival in the rebar market.
• The fourth main challenge in this regard is the unfair approach of the billet producing companies that unfortunately do not pay attention to the long-term interests of the steel chain and prioritize their short-term business interests.

Regarding the members of the forum for effective measures to overcome this disruption, several meetings and expert reviews have been carried out which includes

• The acceptance of the responsibility for standardizing the billet by the Standards Committee.
• Designing the audit system and upgrading the quality of rebar manufacturers,
• The ranking system for rolling mills, compiling questionnaires and its implementation mechanism,
• Organizing meetings with the tax authorities to see the sales of factories to reduce the non-invoiced transactions in the billet market.
• Healthy competition between units and it was also followed up by the Ministry of Industry to oversee the billet price and its logical fit with the rebar, which members of the association were well aware, led to the Ministry of Industry`s announcement of selling billet on the stock exchange with a ratio of 89% and could have somewhat disrupted fit between the price of billet and rebar.

In order to continue this approach, the standard billing process in the association will soon be completed and submitted to the National Standard for approval and notification. Also, with a favorable and well-received opinion of the rolling mill units, the rating system of the rebar manufacturers will be implemented in the coming weeks. Also, with the promises made by the tax administration, non-invoice transactions will be monitored more closely and more seriously.