Does the commodity exchange benefit tire makers? – Tejarat News

According to Tejarat News, the issue of tire supply in the commodity exchange has been discussed for several months. According to the last meeting of the tire trade association, it was decided that the price of bias tires (truck, cargo, agricultural, bus and road construction tires) will increase by 10%.

It is said that one of the ways to adjust the price of tires is to offer them in the stock market. Because this industry is currently struggling with the problem of command pricing.

Mandatory pricing has caused the country’s economy to face losses. For example, the pricing of the automobile industry during this period has not resulted in anything but losses, and now the factories are adjusting their losses by offering cars in the commodity exchange.

Although the government has tried to interfere with the stock market and impose mandatory pricing on this market, but according to the rules and guidelines as well as the transparency of the stock market, this mandatory pricing is not possible.

Currently, a 10% increase in tire prices is being implemented; This is while we have seen an increase in tire prices in the retail market in the last 6 months. This increase only benefits dealers, and in the meantime, factories and people suffer.

The tire industry is one of the industries that has been affected by mandated pricing in the past, and the possibility of higher rates is also increasing.

Agreeing to supply tires in the stock market

Mustafa Tannah, the spokesman of the tire industry, told Tejarat News: “We are in favor of selling tires on the commodity exchange, because now the price gap between the factory door and the open market has increased, and with the sale of tires on the commodity exchange, the profit from the price increase goes to factories and people.” »

He stated: “If tires are offered on the commodity exchange, the price difference with the free market will benefit the producer and the consumer, but unfortunately, a license has not been issued for this purpose so that industrial owners can offer their products on the commodity exchange.”

The growth of the tire industry

Mohammad Khabarzad, a capital market expert, told Tejarat News about the state of the tire industry: “In the tire industry, we were faced with mandatory pricing, and in the first half of the year, the producers of this industry faced losses. “In the tire industry, due to the major manufacturers, competition is easily done and the price of the tire is high, so there is no need for its mandatory pricing.”

He stated: “Supplying tires on the commodity exchange makes this industry transparent, and it does not matter if real or major applicants are allowed to buy tires from the commodity exchange, in both cases, we will see transparency in this industry; Because buyers trade with the price on the board.

Referring to the losses of tire manufacturers, this capital market expert said: “Given the current announced price of tires and the sharp increase in the price of raw materials, it is not profitable for tire companies; These producers have private shareholders, and this loss comes out of private shareholders’ pockets.”

Khabarzad continued: “Supplying rubber in the commodity exchange creates transparency and creates a fair price for this product. Finally, the supply of tires in the stock market will balance the price for retail buyers and manufacturers.

The effect of changing the tire sales method on the symbols of the tire maker

Regarding the situation of tires in the stock market, he said: “The supply of tires in the stock market makes this industry profitable, and with the increase in profitability, investors will be more fortunate to invest, and as a result of this investment, the tire industry in the stock market will also grow.”

In general, the supply of tires in the commodity exchange can prevent the increase in rental prices in this area, and the profit from the increase in prices will also reach the producers, and the people will not lose from buying tires.

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