Economy, Business And Markets

IME Ready to Host Iron Ore on Industrial Board

IME Ready to Host Iron Ore on Industrial BoardIME Ready to Host Iron Ore on Industrial Board

Iran Mercantile Exchange is ready to host iron ore supplied by local producers on the mining and industrial board, says IME’s managing director.

According to Hamed Soltaninejad, the prerequisite for iron ore’s entry into IME is that the government stop setting a price for the mineral, SENA reported.

Iron ore has long been supplied on IME’s export trading board. However, iron ore producers have long criticized the government’s intervention in pricing and called for transparency and competitiveness in determining the price at IME.

The government is currently subsidizing the iron ore sector to keep the prices in check and support the downstream industries.

“Making the transition into IME will give the iron ore a much-needed boost in pricing amid falling oil prices and market stagnation,” Soltaninejad said.

The Ministry of Industries, Mining and Trade issued a directive in June to Golgohar Iron Ore Company and Chadormalu Mining and Industrial Company to reduce pellet prices by 3% and sponge iron ore prices by 5% to revitalize the country’s steel industry, which is currently suffering from recession.

The decision, which came under heavy fire from the country’s iron ore producers, was recently revised as the enforced pellet price decline was finally set at 1.5%.