The domestic market in İran is currently grappling with a mixture of confusion and weakened demand. A recent power outage has significantly hampered the production of billet, causing a temporary supply shortage. Fortunately, authorities are optimistic that this issue will be resolved within the next two weeks, paving the way for a potential resurgence in the market.
This anticipated increase in the price of sponge iron is poised to be a key development. It is expected to occur as a consequence of heightened demand from billet producers who rely on sponge iron in their production processes. However, amidst growing concerns about rising prices, the government is contemplating measures to prevent unchecked inflation.
One such measure under consideration is the suspension of billet purchases by the commercial sector. By doing so, the government hopes to exert some control over the impending price surge. This decision, if implemented, could have far-reaching implications for the market dynamics.
Looking ahead, two critical factors will shape the market's trajectory. First and foremost, the imminent resolution of the power outage and subsequent billet production. Additionally, the government's response to this situation, particularly in terms of its impact on billet purchasing, will be closely monitored by both industry stakeholders and consumers.
Second, in the wake of the recent agreement between Iran and Saudi Arabia, a profound shift has occurred in the global economic landscape. Notably, the Chinese economy has realigned its focus, directing its attention towards the Iranian market. Chinese investors and businesses have expressed for Iranian commodities, with concentrates, ingots, and billet emerging as focal points of interest. The partnership between China and Iran has the potential to not only bolster the Iranian economy but also impact the broader global economic equilibrium.