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The steel industry is one of the industries in which countries with sources of raw materials and energy have a comparative advantage. Iran has abundant sources of energy and iron ore, which is the main prerequisite for the establishment of the steel industry chain; Therefore, creating a chain of steel industries in Iran has an economic justification. In addition to abundant sources of energy and iron ore, Iran has other advantages for steel production. Access to the seas in the north and south of the country and high domestic market demand for various types of steel are other advantages of Iran for steel production.
Another advantage of Iran in the steel industry is the presence of a large number of experienced and specialized personnel in the specialties of consulting engineers, contractors, builders and domestic installers who minimize the need for foreign machinery and sanctions and currency shortages can not negatively affect the establishment of these factories.
The aggregation of these benefits in one country not only in the region but also in the world is irreplaceable, but in itself does not guarantee the sustainable development of the steel industry in Iran and can be considered as one of the necessary and not sufficient conditions for the industry to flourish. If some countries have become effective players in this industry without having all these components. This fact makes us, in addition to seeing the comparative advantages of the country, also consider the obstacles to the development of this industry, which is undoubtedly one of the most important obstacles, lack of liquidity during construction and working capital during the production period, which is affected by economic sanctions and lack of The possibility of attracting foreign investors is arguably the most important current issue in the Iranian steel industry.
In the current situation, it may be possible to finance from outside sources to build a factory, but the main challenge for many industries after the launch of working capital is that it requires special attention due to the heavy volume required in the steel industry.
While this is a threat to Iran’s steel industry, it could, in another sense, be an opportunity for Iran’s capital market to gain a large foothold in the steel trade and commerce by raising working capital.
The idea of establishing Pardis Zarrin Iranian Company was formed based on such an analysis of the Iranian steel market. In the first step, with the appropriate production capital in this field, we provided the ingots required for the production of steel mills and obtained the monopoly right to sell all the products of this mills, which are currently offered to both the domestic market and global markets.