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EghtesadOnline: The shortage and skyrocketing prices of alloy steel have scuttled over 70% of the domestic fastener sector’s production capacity, an industrialist says.

According to Esmaeil Mar’ashi, a member of Fastener Manufacturers Association of Iran, shortage of steel supplies by Iran Alloy Steel Company (IASCO) has put the steel fastener sector on the verge of a major crisis, as only 30% of the bolts and nuts production units are currently operating. 

“While fastener manufacturers have placed purchase orders for 300,000-500,000 tons this [fiscal] year [started March 20], IASCO has been supplying them with only 40,000-60,000 tons of the material over the past few months,” he said.

The company has not ensured the supply of the material for the coming months, setting the stage for the sector’s future conundrum, he added.

Mar’ashi noted that the shortage has also led to an alloy steel price hike of 70% compared with the last fiscal year (ended March 19, 2020).

He blamed the price hike in the domestic market and shortage of alloy steel on excessive exports of steel products instead of fulfilling domestic demand.

“In case manufacturers are provided with their needs, the fastener industry could meet the market demand for bolts and nuts, which stands at 100,000 tons per year,” he said.

Iran Alloy Steel Company is the biggest producer of alloy steel in the Middle East. The company provides raw materials used in a variety of industries, including automotive and industrial equipment manufacturing as well as oil, gas, petrochemical, rail and construction equipment.

 

steel Prices Production Fastener Sector industrialist