Economy, Business And Markets

New Iron-Steel Joint Council Formed

New Iron-Steel Joint Council FormedNew Iron-Steel Joint Council Formed

The two key private associations in the iron ore and steel sectors formed a joint council, in a bid to address the steel industry issues and boost production in line with the country’s Vision Plan and the Comprehensive Steel Plan, which aim at achieving crude steel production of 55 million metric tons by year 2025.

The Iron Ore Producers and Exporters Association of Iran (IROPEX) and the Iranian Steel Producers Association (ISPA), in their last week’s meeting, decided to form a joint iron and steel council. Officials from the two associations also called for the formation of a consortium to help address the steel supply chain problems, Eghtesadnews reported on Thursday.

According to studies, the current proven iron ore reserves will only meet the country’s needs until 2033. Hence, the new joint council seeks to regulate the iron ore supply and solve the inconsistencies in the steel industry supply chain.

The council, in its first meeting, acknowledged the existence of a direct relationship between the prices of various products in different sectors of the steel production chain and suggested arriving at uniform pricing formulae to regulate the prices. They strongly believe that the players in the steel sector should hold a holistic view over the entire industry instead of focusing on a single sector. The new council’s main goal is to balance the profits and risks in all subsections of the steel industry.