A comprehensive analysis of the possible impact of the Iran-Israel war on the iron and steel market and steel prices in Iran and the world
Near Shadow of War:
The escalation of tension between Iran and Israel has cast a long shadow on the global iron and steel market. While the likelihood of an outright military confrontation remains uncertain, its potential implications for the steel industry, both domestically and internationally, are significant and warrant careful consideration. In this analysis, Fouladtrend news media examines the multifaceted consequences of such a possible conflict and examines its direct and indirect effects on production, infrastructure, trade, and finally, the socio-economic outlook of the region and beyond.
Iran’s iron and steel industry: a vulnerable giant
Direct effects of war between Iran and Israel: successive problems
Global Market Consequences: The Ripple Effect of Volatility
Iran’s domestic steel market: bearing the burden of the crisis
Delays in construction and infrastructure
Moving in the storm
Despite the bleak outlook, several factors could potentially moderate the impact of this conflict:
Iran’s domestic reserves: Iran has significant reserves of iron ore and other raw materials that could help sustain industry during a conflict, although access and processing capabilities may be limited.
Government intervention: The government can implement measures to reduce the burden on the domestic market, such as price controls, quotas, and financial assistance to affected industries. The effectiveness of such an intervention depends on the scale of the conflict and the capacity of the government to respond.
Import substitution: While import options may be limited due to sanctions, Iran can seek alternative sources of steel and related materials from friendly countries. This requires diplomatic efforts and long-term strategic planning.
International cooperation: Depending on the nature and scale of the conflict, international cooperation can contribute to damage reduction, reconstruction efforts and market stabilization.
Source: Fouladrand Analytical News Media
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This post is written by Fxhamid