Challenges mount for Iran's steel industry amid banking dilemma and economic uncertainties

Iran's steel industry faces significant challenges, primarily driven by cash flow issues that have impacted all economic sectors. Last year witnessed a similar trend, but this year's dynamics have shifted with the emergence of the "banking dilemma" resonating among all stakeholders.

The core issue lies in the government's authoritative role and intervention in the economy. Over the past four decades, governments have burdened the banking network with responsibilities, resulting in a rational imbalance in banks. 

The scarcity of liquidity is putting immense pressure on the market, prompting the government to exert control over prices. In this environment, the reliance of production and trade on the banking network further strains banks, impacting their stability. Consequently, the gradual decline in prices persists, albeit with reduced intensity.