Production in Mining Industry Would Be Fortified/Removing a Huge Obstacle in the Way of Production

Production in Mining Industry Would Be Fortified/Removing a Huge Obstacle in the Way of Production
“We’re going to start the new plan of the Ministry of Industry, Mine and Trade regarding the new premium discovery contracts for mining products in Iran’s commodity exchange market.” Said the deputy of the Ministry of Industry, Mine and Trade, “With this method, the market will be predictable for both the producer and the consumer, and there will be the possibility for long term plans in production. Actually with this method, one of the biggest obstacles in the way production, which is the inability to predict for the short term and midterm plans, will be removed. It is a huge step in production.”


According to the Mining Investment Insurance Corporation’s report, Mohammad Sadegh Mofateh said about the Ministry of Industry, Mine and Trade’s new plan regarding the premium discovery contracts in smart management of Iran’s commodity exchange market and putting the producers’ minds at ease, “the logic behind these contracts is that both the producer and the consumer can plan for a year’s efficiency and they can be sure about the future of the market, sales and providing their raw materials. With this new plan, the Ministry of Industry, Mine and Trade, using the exchange market’s potentials, will make the market predictable for producers.”

About signing long-term contracts, Mr. Mofateh continued: “with this method, when a production unit presents its product for a period of six months, or a year, there would still remain some products, and after covering the domestic market’s needs, the producer can start exporting the remained products. In other words, the producers can plan for exportation, and so when a company knows how much it has to product to cover the domestic market and export, it can plan better for its production, and this could be an advantage for producers.”

“On the other hand, downstream industries can purchase the raw material they need for six months and come to a better production with a better planning, and won’t be worried about the market’s fluctuations. With this method, the market would be predictable for both the producer and the consumer and the producers can have midterm and long term planning.”

The Industries Welcoming the New Plan

“We have just started this plan in the exchange market, and when the industries get familiar with it, we’ll see them welcoming it.” Said Mr. Mofateh, emphasizing that the industries will hugely welcome this plan, “I emphasize, with this method, the client is sure about having the raw material they have bought, and the producer is also sure about selling their products in the future, and the remains of their products will be exported. This will bring a stable and relaxed atmosphere in the market and both the consumer and the producer will welcome this plan.”

New Blood in Production Veins

Mr. Mofateh said: “at the moment the producers do not know what will happen in the market in the next six months, and therefore their reactions towards international markets is very emotional. This will only add to the problems the market already has, but with this plan, they can relax and be sure that whatever happens in the global market, they will always have the products the need and can always receive raw material.”

The premium discovery contracts started on November 20th, and the consumers welcomed this plan, especially for the steel ingots of the Sirjan Jahan Steel Complex, Chadormalu and South Kaveh steel Co, and 175000 tons of products were exchanged in 27 contracts. 120 tons of cathode copper of the National Copper was exchanged by 6 contracts, each selling 20 tons, and so the premium contracts on the first day were 33.

Dec 12, 2021 14:37
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