TEHRAN, Iran, Oct. 20
Trend:
The head of the Iran Stock Exchange Organization said that the recent decision on the mandatory pricing process for steel products in the Mercantile Exchange will have no result other than corruption and violation of the right of 50 million shareholders.
"Based on previous experience, this measure will not have any beneficial results,” Hasan Qalibaf the head of Iran's Securities and Exchange Organization (SEO) said, Trend reports citing Mehr News Agency.
"Considering the significant impact of steel companies 'stocks on the stock exchange, this mandatory pricing, in addition to reducing the income of steel companies whose profits belong to shareholders, will damage the general stock exchange function,” he added.
"Unfortunately, a similar action was taken in 2018, and as a result, the lifting of the price ceiling in the mercantile exchange, the market suffered severe tensions,” said Qalibaf.
"Although decision-makers take these measures with the intention of protecting consumers and reducing final prices, unfortunately, these measures do not ultimately lead to lower final prices and only lead to market fluctuations,” noted.
The steel sector is being noticeably developed, and through implementing different projects in recent years a good market has been formed for the steel and steel products, but there is still some controversy over the prices and some dispute between the upstream and downstream industries in this regard.
Offering the complete steel chain in Iran Mercantile Exchange (IME) is said to be the solution to this problem.
It is believed to put an end to all the challenges in terms of price, as this strategy will let the market discover the real price.