Alloy steel association calls for repeal of the 1.5 point rise in concentrate and pellet base-price coefficients

In a letter to the Minister of Industry, Mine and Trade published on Saturday, 25 July 2026, the Iranian Alloy Steel Producers Association called the 1.5 percentage point increase in the base-price coefficients for iron ore concentrate and pellet on the commodity exchange "unprofessional" and demanded the immediate repeal of the directive.

Base-price coefficients are the basis for calculating the offer price of steel-chain raw materials on the Iran Mercantile Exchange. Raising these coefficients increases the input cost of concentrate and pellet for steelmakers; the mid and downstream links of the chain, including alloy steel producers, are the first group to feel the increase in their margins.

Disputes over the pricing formula for the iron ore and steel chain go back several years, and every revision of the coefficients shifts profits among the listed companies in the chain, which is why it matters directly to shareholders in mining and steel tickers on the capital market.