As per the recent announcement by Mr. Jafar Sarqini; Deputy of Ministry of Industry, Mine and Trade; the price of sponge iron should be set at a maximum of 50% of the selling price of the Khuzestan steel billet sales in Iran Mercantile Exchange for the last 15 days.
This announcement is the result of an agreement between smelting companies and sponge iron manufacturers that has been concluded after several meetings at Iran Steel Producer Association and the Ministry of Industry, Mine and Trade.
Mr. Jafar Sarqini has referred this prices as “interactive and agreeable”. He emphasized on the necessity of observance of this pricing formula by the sponge iron producers and asked them to cooperate with the ministry of finance to achieve steel chain compliance.
As per market sources “the decision was made when some billet producers especially the private sector manufacturers, objected that some sponge iron producers failed to comply with the previous approved prices and in numerous correspondence they were charged 5% to 8% more on the approved price.
It should be noted that in the previous formula, DRI price was set equivalent to 50% of value of billet of Khouzestan Steel Complex mills to be consumed by all steel mills.
Inputs Taken From Chilan Online
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