Will the conditions of cement in the stock market improve? Interference in the market is detrimental to production
According to Tejarat News, ANajman Trade Union of Industry Employers Cement He believes that the Ministry of Silence does not have an estimate of the conditions and costs of production.
Abdolreza Sheikhan, Secretary of Cement Industry Employers’ Union, said in a conversation with Tejarat News: “Government’s interference in the market and prices of goods, as well as imposing restrictions on electricity, gas, and energy, weakens production.” This situation will bring the work to the point where we may have to stop production. Therefore, in order to maintain and continue the production, we expect the Ministry of Security to understand the requirements for the continuation of the production process and its costs.
This official stated: Until 1400, the Ministry of Safety and the Support Organization used to determine the price of cement by order. But after cement entered the commodity exchange, the price was determined in the supply and demand mechanism and the conditions of the industry improved.
He pointed out that in the last few months we have seen some interventions in the cement market and explained: Capital market rules dictate that when products enter the stock market, the price should not be an order and supply and demand should discover the price. But the government, as the custodian of the country’s market, inevitably makes some interventions.
He stated that production requires costs and the authorities should understand that in order to cover the costs, sales must be made at a price that covers the costs. weakens As a result, the work may reach a point where we may have to stop production. So, measures must be taken to maintain and continue production.
Stock exchange, a solution to reduce brokering in the cement industry
He explained: With the entry of cement into the commodity exchange, the prices became real and the cost that went into the pockets of brokers went to the factories.
Sheikhan said: This solution was very positive and useful because it satisfied producers, consumers and shareholders. Also, the prices were set transparently in the stock market. In fact, many game dealers declined. In addition, some of the problems of the factories, such as the lack of liquidity, were solved to a large extent, and these problems occurred when cement entered the commodity exchange.
The Secretary of the Cement Industry Employers Association said: With the electricity and energy restrictions imposed by the Ministry of Energy for cement factories. It is natural that the production decreases and when the production decreases, the pressure and rush to the stock market and the cement market to buy. This causes the price of the product to rise. This issue is also relevant for other industries such as steel and petrochemicals. The government should take into account that these cases are temporary and therefore reduce interference.
The secretary of the Cement Industry Employers Association stated: Therefore, what we expect from the Ministry of Safety is to understand the continuation of the production process. As the guardian of production, all the efforts of the Ministry of Security should be to continue the production process.
Will the cost of products increase?
He continued: In this regard, the Ministry of Security should hold meetings with specialized organizations and the commodity exchange so that a solution is considered so that the prices of products do not rise falsely, factories do not suffer losses, and the government achieves its goals. Also, the production should flow with a favorable trend and the consumer can also buy the desired product.
Saying that cement production is more than the country’s needs, Sheikhan added: With the increase in costs, production has become difficult, and if we do not have good income, we will undoubtedly not be able to carry out major repairs. On the other hand, electricity and gas restrictions cause costs to increase, and when production decreases, the cost of production increases and causes us to move towards staff reduction and other problems.
Pointing out that these problems can be solved with interaction and with interaction we can produce and sell at reasonable prices, Sheikhan said: For example, recently there was an interaction with the Ministry of Energy. With the meeting held by the cement industry with the Minister of Energy, positive steps were taken. In this meeting, agreements were made so that the process of cement production does not stop. Therefore, with such an approach, the problems will be minimized.