News ID : 4261
Publish Date : 09 January 2021 - 09:02
Meanwhile, the issue of steel pricing has entered a serious phase and the opponents of this plan are more than the number of proponents, which is expected to be a new round of price increases with the implementation of this new law, especially in the automotive industry due to rents.
Khodrocar - It seems that with the launch of the "No to order pricing" campaign, the entry of the Ministry of Industry into the field of steel order pricing has caused problems because the reduction of the price ceiling for steel products is not within the authority of the Minister of Industry. It is called the work of the Minister of Economy.

Undoubtedly, in addition to the rents created for some steel companies, the industries that are directly related to this industry will be affected by this decision, and one of these industries is the automotive and parts industry.

Industry activists believe that if steel is supplied directly by the component maker, the situation will be different from when steel is supplied to the component maker through the automaker, and the likelihood of an increase in price and cost increases.

"At present, steel consumers can buy steel at a higher price to meet their needs, so Mobarakeh Steel, as the largest steel company, in addition to offering on the stock exchange, is witnessing price differences due to the lack of proper supply.” Siamak Moghtaderi, member of part makers association board of directors told khodrocar reporter.

"Since part of the production of steelmakers is allocated to automakers and part is used for the needs of this industry and part is used in the parts industry, if the price of steel decreases, it can have positive effects in this industry.” He added.

"Part of this is the need for parts manufacturers to supply directly from the steelmaker, it seems that this part will be subject to turbulence that will indirectly affect the price of the car.” He said.

"The answer to the question of whether the price of a commodity should be determined by the listing on the stock exchange, grammatical pricing should be the criterion for pricing, or the producer-consumer relationship should be direct, can be more easily deduced from the specific effects of steel pricing on the automotive industry achieved.” He continued.

Since in recent years we have witnessed the negative effects of dictatorial pricing on the economy and the imposition of billions in losses on automakers, without a doubt, with the implementation of this decision, we will see the losses imposed on steelmakers and related industries. They can survive to use the existing rent, and this will fuel corruption in the steel market.
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