According to market reports, late last week we saw a significant increase in the price of iron, especially in the market of beams and rods, but price stability was also observed in some sales sources.
The price of the dollar, which fluctuated in the channel of 58 thousand tomans on Thursday, entered the channel of 59 thousand tomans on Friday. In other words, the dollar, which had started to increase in price since the last two months, reached 50,000 tomans to nearly 60,000 tomans in the open market, and again remained stable at 55,000 tomans for a while. But on the last day, the channel was sold for more than 59 thousand tomans in the open market.
On Thursday, March 19, 1402, the suggested prices for the sale of rebar were reported with a minimum price of around 25,300 to 25,500 Tomans and a maximum price of around 26,500 Tomans per kilogram.
The price of Neyshabur bars, which was at its lowest price channel this year at the end of November, was about 22 thousand Tomans, but since the beginning of December, this product has been gradually increasing and is currently at the border of 26 thousand Tomans; The price of Neyshabur rods was around 22 thousand tomans. The average bar price, which was in the channel of 21 thousand tomans, reached 26 thousand 200 tomans from the beginning of December. Based on the one-year graph, the average price of rebar is in the March price channel of last year.
The increase in the price of bars in recent days is attributed to various factors, including the growth of the dollar price, the increase in the demand for bars during Nowruz, and also the increase in the price of raw materials. for the production of rebar and it is expected that the price of rebar will continue its upward trend in the coming days.
Some companies in Tehran increased Isfahan steel beams between 50 and 100 thousand tomans for each branch. This price increase is while the price of steel beam has remained stable in recent days.
The price of Nikan’s 2 million profile, which was announced at the beginning of December at 34,000 tomans, has increased by 7,000 tomans and is now traded at the border of 42,000 tomans.
The steel market is facing many challenges and contradictions in the first week of March 1402, and on the one hand, due to the lack of prosperity in the housing and construction sector, we are witnessing the weakness of real demand in the market. On the other hand, the demand for credit and loans, especially in the commodity market, has been booming using domestic currency transactions. This demand for credit, along with the current pricing mechanism in the commodity exchange, has increased prices.
Despite the lack of prosperity in the market, the demand for credit increased in March. This demand is due to inflationary expectations and the desire to buy at lower prices. Sales representatives refuse to sell loans due to market volatility and high risk.
Currently, the prices in the commodity exchange are determined based on domestic currency bullion transactions and with the current price determination mechanism. This mechanism favors the big steel companies because they can use credit demand to raise prices to their advantage.
Having said that, it can be said that the month of March is associated with chaos and disorder in the steel market due to many contradictions and fluctuations. This confusion is detrimental to actual consumers who have to pay high prices for hardware.
The price increase in the commodity exchange is due to the demand for credit and also the improvement of the Kodal report of large companies. This increase in the price of rebar and other steel products will benefit the big steel companies, but it will harm the real consumers and other economic sectors such as the construction industry.
The market maker should review the current mechanism of pricing and credit transactions to control prices, support genuine consumers and stabilize the market. In addition, the government should help to regulate the steel market and support the real consumers by adopting appropriate policies.