Mahmoud Akbari, Deputy Director of Sales and Marketing of Mobarakeh Steel Company, said about the company`s offer on the commodity exchange based on the agreed price. "Our supply on the stock exchange is one of the symbols of the company`s hot plate, according to the rules and regulations that the competition council has informed on a price basis. Therefore, based on the price base of the Competition Council, we will offer our goods on the stock exchange in the amount of 4 thousand and 200 USD. In other symbols, we do the same in such a way that the price base for other products of the company varies according to the rules of the Competition Council, but ultimately it is offered on the basis of the same currency of 4,000 and 200 Tomans.
He added: "One of the problems with supplying us at the stock exchange is to the downstream industry. As the supply of Mobarakeh steel products is similar to the supply of long products such as rebar or manifold, they are different, as long products are quite construction, but the consumption of Mobarakeh products is industrial. The greater the supply of Mobarakeh Steel on the banner, the lower the cost of purchasing from the downstream industry, as the customer in the downstream industry does not know how many tons of goods today can buy. Also, the supply on the bulletin board will make customers who use lower tonnage, buy the most tallies on the board. For example, we announce that the maximum tonnage you can buy for each customer is 3,000; while it`s likely that the customer`s monthly consumption will not be as high as 3,000.
Accordingly, companies with higher purchasing power and higher production can go to companies whose production capacity is lower, and practically both offer an equal opportunity to buy in stock," Akbari said. This problem has been solved in Mobarakeh Steel for decades. So that at most, between 20% and 30% of Mobarakeh`s steel products were sold on the bulletin board, and on the basis of that price, the rest of Mobarakeh products were distributed on the basis of the power consumption among the companies. With this policy, we prevented from trading the sheet. Currently, our supply base is based on the exchange rate of 4,000 and 200 Toman, which is highly regarded. I think that if Mobarakeh Steel distributes 30% of its products through the stock exchange, and distributes the remainder in proportion to stock prices and according to the rules of the stock exchange between the rest of the factories, based on the understanding of the past 20 years, this will lead to market stability.
Sales and Marketing Deputy of Mobarakeh Steel Company in response to the question of whether the purchase ceiling is set for the demand of companies? "Yes, there was a ceiling for purchasing hot, cold, slab, billet and bloom products, according to the Ministry of Industry, Mining and Commerce`s Mineral Letter to the Stock Exchange, Mobarakeh Steel and the Stock Exchange, it was announced that supply should be based on the framework to take place.
He also emphasized that the announcement does not limit the supply of Mobarakeh Steel: "Of course, the supply of Mobarakeh Steel, supply on the stock exchange and on Mitching, which in this case is not a problem. But if we only supply the stock exchange, we will have a problem because, in addition to this kind of supply, it is possible to plan for production and purchase from the downstream industry, due to the high willingness to buy Mobarakeh Steel products, turbulence in the market Is created. Therefore, in talks with the Deputy Minister of the Ministry of Industry, Mining and Trade, it was stipulated that the Mobarakeh Steel products would be subject to supply and matching (both), and that is why there is no problem. But in the case of the company`s cold products, at no point in time, we did not sell this cold product (100,000 tons a month). In fact, we had about a million to one million and 100 thousand tons annually, and this year we will have the same amount of cold sheet supply to the market. Now demand in the country is not increasing and the inflammation in the market is not related to the market, because although the price of Mobarakeh steel sheet has been higher than 200 tons of steel products in the past, it is now the opposite, indicating no inflammation in The market is the same. Currently, domestic buyers are concerned about the depreciation of the Rial against the foreign currency, which I believe will overcome this problem over time.
Akbari continued: "Currently, the basis for domestic pricing is $ 4,205. But this currency does not belong to some applicants. This has become a dilemma; for example, some applicants purchase goods on the basis of 4,000 and 200 Toman (each commodity), and then again in markets outside of Iran, to the dollar at the rate of the day, and the Rial earned with the open currency exchange system back to the country. That is, $ 4,000 and $ 200 will be converted into a dollar market price (more than $ 7,000), and this demand will be returned to our country again and will serve as a demand on the government table. A special framework has to be defined for cases such as steel products that have been blocked from exporting by the same method and only authorized to export to the manufacturer. On the other domestic goods, the same policy should be applied to steel products to define the process to prevent the export of this product.