Improving foreign currency supply for the import of rubber raw materials – Tejaratnews

According to Tejarat News, Mustafa Tanha added: In the first quarter of this year, the production of tire manufacturers increased, but in the second quarter, the production trend decreased, and the reason for this was the lack of timely supply of foreign currency for the supply of rubber raw materials.

He added: From February 1401 onwards, the supply of foreign currency needed by tire manufacturers faced a problem and was paid in a drip form.

The spokesperson of Sanat Tire said: The meaning of foreign currency supply is to transfer the currency to the raw materials seller’s account. Sometimes, all the foreign currency allocation process was done in the relevant units administratively, but its payment was not operationalized through the central bank.

He continued: If the foreign currency is not deposited into the seller’s account on time, the steps of purchase, loading, customs clearance, domestic transportation, testing of imported materials and obtaining quality permits from the relevant units will all be delayed and finally the materials will reach the manufacturer. It will be time consuming

The spokesperson of Sanat Tire said: “It is not the case that the currency is allocated today and a few days later, the raw materials reach the producer and the production starts.”

The currency allocation of the rubber industry has improved somewhat

He added: “Unfortunately, until the first half of this year, foreign exchange was given to producers in a drop-by-drop manner. Since September 1402, the allocation of foreign currency has improved to some extent.”

He stated that according to the surveys conducted in the forum, the country’s per capita tire consumption is 21.5 million rings (whether it is the need of car manufacturers or replacement tires for vehicles in traffic) and said: Last year, the country’s need for 21.5 million tire rings , was provided by domestic manufacturers, but since the tires have various sizes and each car has its own tire, there may be an excess production in some sizes and a shortage in some sizes.

The country’s needs are met through domestic production

The spokesperson of the tire industry added: Last year, domestic producers produced tires equal to the country’s needs. This year, if the normal procedure is followed, the country’s needs will be met through domestic production.

Just pointing out that since September 1402, there have been openings in the payment of foreign currency, he said, but still there has been no fundamental change in transferring it to the accounts of raw material sellers and it is only on paper.

He continued: The lack of timely support for tire manufacturers, the late supply of foreign currency to the producers and the lack of understanding of the country’s production priorities caused tires to suddenly become scarce in the country, and now they want to manage this crisis with a sudden and comprehensive action. somehow reduce the inflammation of the market, but the root of this incident was not in the tire manufacturers, but in the devices that should support the country’s tire manufacturers, but at the time of the sensitivity of the issue, there was not much understanding and support.

Regarding the method and amount of foreign exchange allocation, he said: The foreign exchange allocation was not done continuously, but it was not interrupted. For example, the tire industry spends about 25 million dollars a month on average, in other words, about 300 million dollars a year.

Pointing out that the total foreign exchange of the tire industry is 300 million dollars per year, he added: in the period from February 1401 to July 6, 1402, 35 to 40 million dollars were allocated to the tire industry, that is, in a period of 5 months, amounting to The consumption of one and a half months has been given to tire makers to provide the materials needed for production.

The spokesperson of the tire industry said: In such a situation, when the currency reaches the seller of raw materials late, it is natural that the raw materials reach the producer late, so it is necessary to manage both the consumption of raw materials and the production of tire sizes, and by reducing the amount of production, from closing down. The factory is prevented.

He added: “Unfortunately, as soon as it is felt that a product in the market is associated with a production challenge, that product becomes scarce and turns from a consumer product into a capital product.”

35% of raw materials for tire production are imported

By stating that 35% of the raw materials for tire production are imported and the rest are supplied by domestic producers, he said: The raw materials for tire production include synthetic rubber, metal reinforcements (wire), fabric reinforcements (thread), carbon black, oil and some Chemicals.
The spokesperson of Sanat Tire added: Domestic producers, like importers, need foreign currency to supply raw materials, and with currency fluctuations, the foreign currency needed by domestic producers is difficult to supply.

He added: Tire is part of a product that is subject to mandatory standards, and if domestic production does not comply with the standards of car manufacturers and the National Standards Organization, it will not be purchased. Besides, tires are a sensitive part of car safety and all mandatory standards should be applied to it.

He continued: “Domestic tires are among the good average tires at the global level, of course, in tire production, not only mandatory national standards are applied to them, but optional standards are also included, because there is competition between tire manufacturers, so each tire manufacturer tries to Adjust your manufactured tires to the world’s current standards.

The spokesperson of Sanat Tire said: Tire quality cannot be recognized simply by touch and pressure, and each car needs special tires.

He pointed out that until the quality of manufactured tires is approved by the National Standard Organization, he has no right to supply them to the market, adding: Manufacturers deliver first-class tires to the market, but it is not the case that second-class tires are not produced, i.e. Standard Tire manufacturers. They erase the second degree to be used in cars that do not travel on the main highways of the country.
The spokesman of the tire industry said: If a grade three tire is produced, its rim will be cut in several places so that it cannot be used.
Tanha added: In tire production factories, representatives of car manufacturers have direct supervision, so in the production of OE tires or original tires, (fabric) more strictures are applied, but in the production of replacement tires, there is less sensitivity and quality strictures.

Source: Asar Khoro