Fundamental analysis of steel / Mandatory pricing blade on the throat of steelmakers – Tejaratnews

According to Tejarat News, Isfahan Mobarakeh Steel Company was established in March of 1369 and two years later it was put into operation. In the following, the shares of this company were offered in Tehran Stock Exchange in March 2005 at a price of 190 Tomans. The capital of the company at the time of initial offering was 1,580 billion tomans.

The main activity of this company includes the exploration, extraction and exploitation of metallic and non-metallic minerals needed by the steel industry, including the extraction of iron ore, dolomite, production of granulated iron ore, concentrates and pellets.

The market value of Mobarakeh steel on the 16th of Esfand 1401 was about 447 thousand 320 billion Tomans, which shows the importance of the behavior of this share in the group of basic metals. So that the efficiency of steel is only two percent different compared to the average of the basic metals group.

How much did Foulad earn in February 1401?

Reviewing the monthly performance report of Isfahan Mobarake Steel Company shows that the company was able to sell 614 thousand tons of its products in February this year.

Comparing this number with the total amount of production during the same period last year, shows that steel production has increased by about 17%.

Also, in January of this year, Foulad produced 712 thousand tons of its products, which include hot products, coated products, and cold products. This number shows that Bahman Fould’s production has increased by 18% compared to last month.

Further examination of this financial statement indicates that Mobarakeh Steel has sold 614 thousand tons of its products in the second month of winter this year, which has decreased by three percent compared to the sale of 635 thousand tons in January.

It should be mentioned that the total sales amount of the company was recorded as 607 thousand tons in February 1400.

Also, this financial statement shows that Isfahan Mobarake Steel Company managed to earn 12,233 billion Tomans in February this year. This number has increased by seven percent compared to the income of 11,438 billion tomans in January.

It should be noted that the company’s income has decreased by four percent compared to the same period last year. It should be mentioned that Foulad Mobarake Isfahan earned 12,747 billion tomans from the sale of its products in February of last year.

Compensating the budget deficit by selling steel

According to the announcement of the Privatization Organization, today 22 Esfand, equivalent to 5.2 percent of Foolad shares, which is owned by the government and includes 27 billion and 560 million shares, was to be transferred to the stock exchange in a block form.

It should be noted that each steel share in this transaction is valued at 1,407 Tomans. Therefore, by selling this number of shares, the president’s government can compensate its budget deficit to some extent.

Preventing the increase in the price of steel in the commodity exchange

According to the notification of the Iran Commodity Exchange, starting today, March 22, 1401, the base price of bloom ingot products and steel sections such as beams, rebars, corners and studs will be calculated by taking into account the range of positive one and negative five percent of the price discovered two weeks ago.

If there is no supply of steel in the previous two weeks, the base price is calculated based on the lowest price.

In this way, steel is only allowed to increase its price up to one percent, but up to five percent price drop is possible for this precious metal.

Fluctuations in exchange rates is another problem that has gripped steel, so that despite the increase in the exchange rate between the exchange center dollar and 28,500 tomans of Nima and the positive effect it has had on the export sales of companies, but with the increase in the price of the free dollar, there is still a gap. A price will be formed between the exchange dollar and the free dollar.

This causes the company’s expenses to increase more due to inflation compared to the company’s dollar income.

Read more reports on the stock news page.