Ministry says automakers steel sheets secured via IME
Industry Ministry said steel sheet supplies for automakers are being met through the Iran Mercantile Exchange (IME) and warned of legal action against price gouging, as authorities move to stabilize the market following recent disruptions.
“With the supply of steel on the Iran Mercantile Exchange, the sheets required by automakers have been provided, and this process continues on a regular basis,” ministry spokesperson Ezzatollah Zarei told IRNA.
"On Monday, 160,000 tons of steel sheets were offered in the IME, of which 90,000 tons were sold," Zarei said.
Zarei said the increased supply of steel sheets through the exchange would lead to price moderation and eventually a decline in steel prices, adding that injecting steel sheets into the market would meet producers' needs and there was no cause for concern.
Separately, Minister of Industry, Mine and Trade Mohammad Atabak said on Monday that Mobarakeh Steel Company has been tasked with supplying steel sheets to downstream and affiliated companies through imports at prices approved by the Organization for Supporting Consumers and Producers. “Of course, alongside imports, we are also pursuing the approach of increasing steel production capacity in the country,” he said.
Rasoul Khalifeh Soltani, a member of Iran’s steel association, said on Sunday the ministry has placed smart and targeted imports of steel slabs and hot-rolled sheets on its urgent agenda.
Zarei warned that any producer or supplier raising prices on the pretext of shortages linked to damage at Mobarakeh Steel during the recent war would face legal action. He said the Organization for Supporting Consumers and Producers is continuously monitoring the market, in coordination with enforcement authorities, to address violations.
In recent weeks, some traders in the open market have raised prices of steel-related products, including automobiles, citing alleged shortages following damage to Mobarakeh Steel’s infrastructure during the conflict. Car prices have surged over the past two weeks, with sellers attributing the increases to a lack of steel sheets.
Mobarakeh Steel Company (MSC), based in the central province of Isfahan, and Khuzestan Steel Company in the southwestern Khuzestan province were hit multiple times during the American-Israeli war that began on February 28. MSC is working to restore stable production after parts of its lines were damaged during the hostilities.
Western sanctions on Iran, along with damage from recent military attacks on production infrastructure, have further intensified challenges facing the sector.