TEHRAN, Iran, Nov.2
Trend:
The parliament is finalizing its steel plan that would allow a complete chain of steel to be offered at Iran Mercantile Exchange, said Vice President of parliament industrial and mine commission.
"The commission wants to offer a complete chain of steel at stock exchange that would certainly have a positive effect since we have surplus products," said Ali Jaddi, Trend reports citing ILNA.
"The annual steel consumption is less than 20 million tons and if the country's production is more than 30 million tons there is a surplus that can be sold. So far a low percentage of produced steel is being offered at the stock exchange that doesn't meet the demand that is less than 40 percent domestic consumption," he added.
He went on to say, the low volume of steel would raise demand which would eventually lead to price increases and volatility in the stock market.
"The following plan has been formed to prevent dealers to set prices that are 20 percent higher than the global prices which leads to increases in construction material, home appliances, auto prices, and etc. We have set celling for steel base price at the stock exchange and it could be 95 percent of global FOB, " he noted.
According to Jaddi, the only buyers would be producers or consumers to prevent hoarding and the trade should be monitored by a trading system.