Why sell raw materials is easier?

Esfahan steel company expressed the reason for their limited supply of goods as a lack of raw materials. In fact, the low tariffs of exported raw materials to other countries . As a result, these materials do not satisfy domestic demand.

The application of the export tariffs on iron ore has been made as an important headline when the volume of exports of the products and ingots went up to other products, and thereafter the term “selling crude” term and ways to prevent it were introduced.

This increase in the volume of sales to other countries comes from three main causes:

1. first of all , sanctions were imposed on steel products . naturally , the export of raw products and ingots in terms of shipping is easier.
2. Second, buying billet and raw products ( iron ore) has a wider market than finished steel product.
3. finally, the price of iron ore in the global market has increased ,while the market for steel products is in recession.

In the following diagram , the volume of sales volume of raw products (billet+ iron ore/DRI ) and final steel products are shown in the last three years . The rate of sales in raw products is higher , the statistics indicate