Twitter Warning for Steelmakers / Carmakers Damage to Hot Sheet Manufacturers

According to Tejarat News, a capital market analyst tweeted about the possible harm of carmakers to the steel industry and advised that steelmakers should not only think about meeting the needs of domestic carmakers and will be more successful if they think about exports.

Mehrnaz Soltani, who introduced herself as a “lecturer and capital market analyst” and “founder of Hamyar Sarmayeh” on her Twitter page, wrote in this tweet:

“A study of steel production shows that in 1998, the total production, export and import of hot rolled sheet was 7823 tons, 70% of which is consumed in the country’s automotive industry, ie about 5476 tons. If we assume that the steel products of 1998 will be used in car manufacturers in 1999, considering that in 1999 the total light and heavy vehicles produced were about 900 thousand units and 35% of the weight of the car is chamber and chassis, it can be considered that hot sheet consumption In the automotive industry, it is about 3,500 tons. In fact, we have the capacity to produce hot rolled sheets as big as a car factory in Saipa.

The existence of a 40% gap between the production of hot-rolled steel sheets and automobiles shows that the automotive industry is operating extremely poorly. “This could be due to factors such as the lack of other car parts, the slowness of the production line and its lack of robotics, and the weakness of carmakers and component makers in supplying sufficient parts.”

This capital market analyst has given the following solution:
«2 ways to resolve this chat:
1- Accelerate the production and development of automotive technology in order to supply timely and sufficient single parts.
“It is possible for automakers in countries such as India, Turkey and Russia to take full advantage of this opportunity to expand exports, given the technology of making room and the surplus of hot rolled sheets.”

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