Incorrect pricing method in the chain, the basic problem of the country's steel industry

According to Mining News Pro - Mohammad Jaafar Salehi, Vice President of Purchasing of Isfahan Zob Ahan Company, in an international conference, announced the inadequacy of the country's transportation infrastructure for the production of 55 million tons of steel in the horizon of 1404 and said: the cost of raw materials has a great impact on the final price of the product, and transportation is also in The cost of raw materials is effective, so the problems in transportation have increased the finished price of the product and created many problems for the producers.

He added: the conditions for unloading, loading and transportation are not available in the ports and it is not even suitable for the current production. In addition to issues related to sanctions, this imposes many costs on the producer and is expensive.

Salehi considered the incorrect pricing method in the steel chain as a major problem in the country's steel industry and said: practically, one side of the steel chain is under pressure and the other side is left alone, for this reason, for example, the price of iron ore and the ingots do not have the correct ratio.

Referring to the downward trend of steel production in the world, the vice president of Isfahan Zob Ahan Company said: "In Iran, we are witnessing an increase in steel production, and in this situation, due to the low consumption of steel, exports should not be hindered, and especially from making decisions that will lose export markets." It removes us, it should be avoided.

He added: "In supplying raw materials through import, we are facing sanctions problems, including money transfer, insurance, etc. However, the import of raw materials and equipment is carried out, although it has a high risk."

Pointing to the imbalance in the steel chain, Salehi said: "Parts of this chain are swollen and we have many problems, especially in the product sector, and solving these problems depends on serious thinking."

Isfahan Zob Ahan Company purchasing vice president said: Considering the decline in exports from China and Europe, we must act carefully in increasing steel production capacities.

Pointing out that Isfahan Zob Ahan Company needs 6 million tons of ferrous materials every year, and its stable supply is facing problems, he said: improvement of rail infrastructure and speed of travel, reduction of stops of wagons, smooth improvement of unloading and loading in ports, etc. are essential. The main thing is to improve production and export conditions.

Salehi said: I hope that the statement of these problems will lead to a solution for them so that the country's steel industry will experience better conditions.