Saeed Zarandi, CEO of Mobarakeh Steel Group, in a meeting with members of the Industries and Mines Commission of the Islamic Consultative Assembly (Parliament), outlined the dimensions of recent fluctuations in the steel sheet market following the attack on the company. He emphasized that the turbulence created in the market was rooted more in psychological pressure and media-driven sentiment than in any real shortage. He noted that through proactive measures, reorganization of commercial operations, and targeted product supply, Mobarakeh Steel prevented the emotional atmosphere from turning into a crisis in the country’s supply chain and ensured uninterrupted supply to downstream industries.
According to the analytical news platform Erasin, Saeed Zarandi, CEO of Mobarakeh Steel Group, while explaining market conditions in the days following the attack on the complex, referred to the company’s proactive and planned measures to meet the needs of downstream industries and prevent market turbulence, stressing that despite the extraordinary circumstances, Mobarakeh Steel did not allow the country’s supply chain to face serious disruption.
Referring to the breadth of Mobarakeh Steel’s customer network, Zarandi stated: “More than one thousand companies directly receive steel sheets from Mobarakeh Steel, ranging from pipe and profile manufacturers to automakers and a wide spectrum of sheet-consuming industries. Therefore, it was natural that after news of the attack on Mobarakeh Steel was published, a particular psychological atmosphere emerged in the market and concerns were raised among customers and officials.”
The CEO of Mobarakeh Steel Group pointed to the company’s measures in the final days of the year and said: “Since the 23rd of Esfand, based on our assessments of the situation, we seriously informed major customers and large-scale consumers to proceed with receiving their orders.”
Zarandi continued: “However, the reality of the market at that time was that recession dominated trading activities. Many buyers explicitly stated that they had no urgent need for goods, lacked transportation capability, or even had no storage capacity for products. Some also said that market conditions did not justify receiving such volumes of steel sheets. This clearly demonstrates that up until the 28th of Esfand, not only was there no demand in the market, but we were actually trying to deliver purchased goods to customers while no one was willing to receive them.”
Referring to developments following the attacks, the CEO added: “After the incidents of the 7th and 11th, and up until around the 20th when the country was effectively influenced by wartime conditions, once the situation subsided and a ceasefire was established, we suddenly observed from around the 23rd to the 25th of Farvardin that the sheet market was facing a wave of psychological pressure and turbulence.”
He stressed: “At the same time, we repeatedly emphasized to relevant authorities that nothing extraordinary had happened in terms of actual consumption. No major national project had been launched and no consumption on such a scale existed that could justify such market tension.”
Zarandi stated: “The reality is that some individuals created tension by implying shortages and generating concern among officials. Our analysis, however, was that the market was not facing a real supply crisis and that what had emerged was mainly the result of psychological warfare and artificially induced concerns.”
Explaining Mobarakeh Steel’s measures to regulate the market, he said: “We designed and implemented a phase based on reconstructing the supply chain through renewed commercial activity. Accordingly, by re-entering the market, we supplied products directly to manufacturing units.”
He emphasized: “During this sensitive period, Mobarakeh Steel sought through forward-looking management, timely decision-making, continuous communication with customers, and activation of alternative capacities to prevent the psychological atmosphere caused by the attacks from turning into a real market crisis. Today as well, we are seriously pursuing the restoration of capacities, market stabilization, and supply of the country’s industrial needs.”
Rejection of import monopoly; emphasis on empowering the private sector
Referring to cooperation with the government and the private sector, Zarandi said: “During meetings on market supply, a proposal was raised to grant Mobarakeh Steel exclusive authority to independently import steel sheet or slab. I appreciated the proposal but clearly stated that such a monopoly would not benefit the country. It could place Mobarakeh Steel in conflict with economic actors and create negative consequences in the future.”
He added: “Despite this, from a technical standpoint, Mobarakeh Steel strongly recommended that if imports are necessary, they should focus on slab imports in order to utilize the production capacity of rolling mills.”
The CEO further stressed: “Our assessment is that there is no serious shortage in the market. To ensure this, we held specialized meetings with downstream industries to review the needs of manufacturing units.”
Practical measures to break market tension
Zarandi continued: “On the 7th of Ordibehesht, we decided to act decisively to break the market’s ‘psychological price-setting.’ Prior to that, the market price of steel sheet had reached around 140,000 tomans. We sought to eliminate the artificial tension through large-scale supply.”
He added: “On that same date, Mobarakeh Steel offered its hot-rolled sheets at 85,000 tomans. As a result, the market immediately reacted and prices declined. In the first offering, out of approximately 160,000 tons supplied, only around 92,000 tons were sold—clear evidence that, contrary to certain claims, there was no real demand crisis.”
Supplying the needs of automotive and home appliance industries
Referring to recent discussions with executives of major automakers, Zarandi said: “Last week, we held meetings with the CEOs of SAIPA and Iran Khodro. They had concerns regarding steel sheet supply for the coming months, but we assured them that we have sufficient inventory and production capacity and that there would be no supply problem.”
He also referred to the home appliance industry, stating: “We negotiated with many major manufacturers and reviewed their inventory status. Nearly all leading companies announced that they have sufficient steel sheet reserves until Khordad and Tir. Therefore, there is no shortage crisis in downstream industries, and the situation is fully manageable.”
Opposition to market intervention
In conclusion, Zarandi referred to the economic consequences of imports and stated: “Imports are our last option, because entering this area unintentionally leads to an increase of 30,000 to 40,000 tomans in market prices. Although imports are possible, it must be considered that if transportation routes become restricted and bottlenecks emerge, final costs will rise significantly beyond current levels. Therefore, cost management and the use of domestic capacities remain our top priorities.”
