Bidestan Kalaye Steel Company, as a specialized player in the supply and distribution of steel and stainless steel products, closely monitors the developments and policies affecting the steel market. In this regard, the newly approved amendments to the directive regulating the hot-rolled steel sheet market for products under 5 mm thickness, recently adopted by the Competition Council, represent significant changes that will impact the pricing structure and supply mechanisms for these strategic products.
Under this amendment, approved yesterday (July 14, 2026), the most significant change is the revision of the base price determination mechanism for hot-rolled steel sheets traded on the commodity exchange. The base price for hot-rolled sheets produced by Mobarakeh Steel is now set at 1.31 times the average discovered price of slab on the exchange over the past month. For other producers, the base price is set at 90% of the one-month average discovered price of Mobarakeh’s products—a notable shift from the previous regulation, which relied on a three-month average.
Key provisions of the directive also include mandating the Ministry of Industry, Mine and Trade to determine and communicate monthly supply floors for each product category and to oversee the implementation of these supply plans. The Ministry is also responsible for allocating quotas to each unit based on actual production capacity. Additionally, the mechanism for meeting the needs of “small buyers” has been delegated to the Ministry, which could contribute to greater transparency and more equitable access to steel products.
Bidestan Kalaye Steel Company, given its role in the steel and stainless steel supply chain, views these changes as a positive step toward transparency, oversight, and market balance. The company believes that the rigorous implementation of this directive can contribute to market stability and help meet the real needs of various industries.
