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According to the news base «Madan Nameh», The Iran Steel Producers Association is currently one of the country’s reputable and influential economic organizations. However, this association has undergone a long and tumultuous path to reach its current position.
Bahram Sobhani, the head of the Steel Producers Association, explained the early years of its activities on the occasion of the anniversary of the establishment of this organization.
According to him, the country’s steel industry in the 1990s faced a serious structural duality.
On one hand, Esfahan Steel Company, as a large state-owned entity, produced the main part of the country’s steel. On the other hand, newly established private units struggled with various problems.
The Duality Crisis; The Basis for the Formation of the Steel Association
Sobhani referred to the inequalities during that period and said: Esfahan Steel Company was under pressure from mandatory pricing policies.
This company was forced to offer its products at low prices in the market.
In contrast, private sector producers, due to the shortage of billets, imported their raw materials.
However, these units could not sell their products at prices higher than the official price of Esfahan Steel Company.
As a result, the continuation of these conditions inevitably led to losses for the private sector.
State-owned Companies Also Had No Right to Protest
The head of the Steel Producers Association explained that state-owned companies also could not challenge government policies.
The reason for this situation was clear: the government simultaneously served as owner and policy maker.
This structural impasse led steel producers toward establishing a professional organization.
Industry stakeholders concluded that the only way to defend common interests was to form an independent trade institution.
Such an organization could be a unified voice for producers and also provide the opportunity for official negotiations with the government and ministries.
Finally, this idea came to fruition in 2001.
In that same year, several key producers laid the foundation of the Iran Steel Producers Association.
Opposition to Mandatory Pricing
Sobhani considered the reform of pricing mechanisms the most important achievement of the association in its early years.
According to him, the association’s first mission was to use an official platform to defend the interests of its members.
At that time, the selling price gap between Esfahan Steel and the open market had more than doubled.
This discrepancy caused widespread problems in the steel market.
Therefore, through continuous efforts, the association proposed creating a transparent mechanism for price discovery.
Establishment of the Metals Exchange
The association’s persistent campaign ultimately led to the establishment of a metals exchange.
Following this change, producers were able to offer their products in a transparent environment.
Also, instead of mandatory prices, the market-based marginal price became the basis for transactions.
This transformation played an important role in market transparency for steel.
The metals exchange later evolved into a commodity exchange.
Sobhani regarded this change as one of the association’s greatest contributions to the country’s economy and steel industry.
Shifting Missions of the Association Over Time
The head of the Steel Association said that in recent years, industry challenges have become more complex.
For this reason, the association’s missions have also evolved.
Today, steel producers face issues such as electricity and gas outages during peak demand periods.
Restrictive export policies have also complicated company operations.
Moreover, sudden exchange rate fluctuations affect production costs and business planning.
In such circumstances, the association strives to defend the interests of its members.
Advocacy in Energy and Export Domains
Sobhani emphasized that advocacy in energy, export, and currency matters is no longer optional.
These efforts have become a necessity for the continuation of production.
The Steel Association also represents producers in pursuing these issues with responsible agencies.
The main goal is to reduce pressure on production units and prevent disruptions in factory operations.
Growth of the Association from 10 to Over 150 Producers
The head of the Steel Producers Association also mentioned the quantitative and qualitative growth of this organization.
The association started operations in 2001 with 10 members.
Now, more than 150 steel producers are members.
This growth illustrates that the association has earned the trust of a large portion of steel industry stakeholders.
The Iran Steel Producers Association now operates under the supervision of the Iran Chamber of Commerce.
Additionally, it is recognized as one of the top trade organizations in the country.
Ranking Among Leading National Organizations
Sobhani concluded by referring to evaluations made by the Iran Chamber of Commerce.
According to him, the Chamber continuously assesses the performance of trade organizations.
The results show that the Steel Producers Association has consistently ranked among the top organizations.
The head of the Steel Association attributed this status to the trust of its members.
He also emphasized the role of the association’s persistent efforts in defending producers’ rights.
Summary
The Iran Steel Producers Association was formed in response to structural problems in the steel industry.
Confronting mandatory pricing and supporting the establishment of the metals exchange were among the most important early actions of the organization.
Over time, issues such as energy supply, export policies, and exchange rate fluctuations have become focal points of the association’s activities.
The growth in membership from 10 units to over 150 producers also reflects the expansion of this organization’s stature within the country’s steel industry.