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According to the news platform «Madan Nameh» Engineer Meysam Esmaeil Beigie, an active figure in steel production and trade, in an interview with Madan Nameh news platform regarding an analytical article titled “Steel in Fire” about the complex situation of the steel market, explained parts of this article and said: In recent months, the steel market has faced one of its most complex and unprecedented periods; a period characterized by severe fluctuations, reduced transparency, supply chain disruptions, and changes in the behavior of market players, which have turned decision-making into a multi-layered challenge. In such an environment, many market participants have either moved toward passivity or made decisions based more on emotions and momentary news than analysis.
Regarding the purpose of preparing this report, he added: In recent months, what has been most noticeable to me is the lack of a coherent and reliable perspective in market analysis. Many stakeholders, especially in the trading sector, had either limited their activities or their decisions had become merely reactive and short-term. This led me to conclude that the main issue in the market is not merely price volatility but a lack of proper understanding of what is actually happening.
Meysam Esmaeil Beigie continued: Therefore, I drafted the report with the aim of providing an analytical framework rather than focusing on short-term forecasts; a framework that helps market actors better understand the current situation and make decisions accordingly.
He pointed out the most significant change occurring in the steel market and stated: The most important change is the change in the “nature of the market game.” Under normal conditions, the steel market follows relatively clear and analyzable patterns; however, during crises, these patterns become disrupted and the market enters a phase where uncertainty becomes a permanent characteristic.
This active figure in steel production and trade emphasized: In such a context, complete information is not available, rumors travel faster than facts, and emotional behaviors replace logical decisions. Therefore, the competitive advantage shifts from “access to resources” to “the quality of analysis and speed of decision-making.”
Regarding the first phase of the “Steel in Fire” article, which focused on the structural diagnosis of the market, he said: In the initial phase of the article, an attempt was made to identify and analyze the main bottlenecks that become activated during crises. These include issues such as instability in the supply chain and reduced reliability of product delivery, liquidity shocks and increased risk in debt collection, formation of a shadow market and the loss of price reference, erosion of trust in commercial relationships, and also hidden costs that gradually diminish profit margins.
Engineer Esmaeil Beigie stated: It is important to note that these challenges should not be examined separately, but their interconnections must be demonstrated because in reality these risks act as a chain and amplify each other’s effects.
This steel industry expert considered a purely defensive approach in companies a mistake in the current market and said: One of the common mistakes during crises is that companies solely seek risk reduction and survival. However, market history shows that crises simultaneously create major opportunities alongside threats. The second phase of the report precisely focuses on this issue; how to use these conditions to strengthen market position. In fact, shifting the approach from “maintaining the status quo” to “leveraging instability for growth” is one of the key points of this report.
He added concerning the biggest mistake market players make in these conditions: The biggest mistake is “passivity or emotional decision-making.” Some actors completely withdraw from the market and wait for conditions to clarify, whereas this period is actually the time when opportunities are formed. On the other hand, some enter transactions without analysis and merely based on rumors. Both approaches are risky. In such circumstances, having an analytical framework and commitment to it is the most critical factor to avoid costly errors.
He offered a practical recommendation for managers in this sector stating: If we were to give one practical piece of advice, it would be to move decision-making away from being reactive to becoming a data-driven process based on scenarios. That is, instead of waiting for events to unfold, they should design various scenarios in advance and have plans for each. This approach increases decision-making speed during critical moments and minimizes risks.
Engineer Esmaeil Beigie concluded: In crisis conditions, the competitive advantage shifts from “being large” to “being agile and making correct decisions.” Companies that can access more accurate information, decide faster, and act more flexibly will be the winners of this period—even if they are smaller in terms of resources compared to competitors.
This interview is only a part of the content of the “Steel in Fire” article. The full version of this article attempts, with a deep and practical perspective, both to provide an accurate picture of the current market status and to outline practical paths to overcome these conditions and even benefit from them.
To read the full article and examine the details of the analyses and strategies, please refer to the following file.