Kermanshah Zagros Steel Company
Iron Market Analysis in Year 2
The impact of rising dollar prices at the end of the year on iron prices - Iron prices like all markets have a huge impact on the dollar rate fluctuations. The price of the dollar in the final months of the years has continued its uptrend to $ 6,000. Some market experts believe that prices are likely to rise up to more than 4,000 tomans as the dollar crossing the two -year trend line.
Price status of all kinds of steel sections
Most steel sections such as rebar prices, beams, sheets, etc. have seen increased increase in multi -thousands per kilo of iron at the end of the year. Undoubtedly, the rise in the dollar was one of the main reasons for the price of iron in the last days of the year. In fact, if there was no stagnation in the demand and consumer industries of the steel, the price of iron could be several times more expensive. The only brake these days seems to be the lack of liquidity and demand in the industry. Another reflective thing is to increase the price of steel bullion by 5 % to 5 %, which has recorded new price ceilings at the end of the year. Since steel bullion is the raw material of final sections such as beams, rebar, etc., this expensive cost increases the cost of producing these sections in the coming months. This increase in the cost of production will undoubtedly make the final steel sections more expensive.
Conditions of buying iron on Eid holidays
A review of the dollar market history in Nowruz shows that the dollar's rate is usually increasing these days. The reasons for this can be reduced by suppliers and trading volumes, rising demand due to increased liquidity to employees and employees. In such circumstances, the dollar market players can make the market more ease; Therefore, if this can happen for the iron market and the price of iron. Another important point is, however, reducing the demand for iron in the early holidays of the year as well as the half -closure of iron sales areas that can cause iron buyers to encounter problems such as hard cargo and increase shopping costs.
Iron market status in the last days of 1
Steel chain manufacturers, both in the downstream and in the upstream industries. Disrupting the supply chain of some raw materials, losing markets due to financial sanctions, burnout and lack of production lines, and ultimately problems with energy shortages, both in the power supply sector and the gas supply of manufacturers, are among the issues that have made the production and supply of iron supply. These problems can impair the supply of iron supply in the domestic industry, but they have exacerbated these problems in the recession and demand.
Unfortunately low economic growth, inflation above 5 %, budget deficits and closure of government development projects and reduced foreign exchange earnings, government contraction policies, reduced people's revenue and lack of liquidity are among the things that have stagnated the market in many domestic industries. The recession in the construction and infrastructure industries, automobiles and home appliances, which are the main consumers of iron, are among those that have reduced the demand sector for the purchase of steel sections, resulting in a perennial stagnation of the iron market. Given the country's economic and political conditions, the recession does not appear to be ended not only by the end of 2 but by the end.
In recent years, the iron market has seen an unpredictable trend, like many domestic markets, such as dollars. This unpredictability of the market increases investment risks and is one of the main reasons for the outflow of capital from the iron market and other industries. The political and economic measures of governments, regardless of national interests, are the most important reasons for investing in the Iranian market. With Trump's coming to the end of the year, it can be said that the US dollar and iron market is waiting for a sanctions and economic restrictive action by the United States at any moment. If economic pressure rises, the dollar will certainly see prices above $ 6,000 in the near future.
