Increase the cost of stone production

Increase the cost of stone production
  • 2020-05-30
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Secretary of the Iranian Stone Association: When parts of mineral machinery become more expensive, the total price of stone will also increase; Therefore, increasing the price of mineral machinery is one of the important factors in increasing the price of building stone and thus increasing the price of housing.

According to the International Iranian Stone Fair, as experts believe, rising housing prices in Iran are not affected by one factor, but by factors such as rising land prices, inflation, weak policies, sustainable policies and guidelines, rising production costs, problems. The market and the creation of profiteers and speculators.

In this report, we focus specifically on the issue of mining and building stones and its impact on housing price growth. Since Iran is one of the countries that is very rich in stone resources and is one of the ten countries producing this product, it is expected that the stone will not increase in price and this will not affect housing prices at least, but the problem is that the price of stone from time to time Under the influence of increasing the costs of exploration, extraction, etc., it increases and affects the price of housing, although insignificantly.


Espionage of profiteers and speculators

Bagher Mohammadi, CEO of a mining company, said that the increase in stone prices does not have much effect on housing prices, adding that fluctuations in stone prices in our country affect the increase or decrease in housing prices, but this effect is not severe.

"The important thing is that housing is a final commodity whose price increase is not always subject to the increase in the price of construction materials, and may be due to rising land prices, speculation by profiteers and speculators," he said.

The CEO of the Mining Company stated that the main reason for the increase in housing prices is the weak support for production. "When production in the country is hampered and the activity of many factories stops, investors and those who have liquidity buy housing without real need Their capital will not be lost, and this will have a negative impact on the economy and, in part, on the livelihoods of the families seeking shelter.

Mohammadi said that in the four provinces of East, West Azerbaijan, Zanjan and Fars, there are mines for construction stones, silica, kaolinite and stone processing. "We must look for the main cause of the increase in the price of stone in Iran, which can increase the price He mentioned the required parts and machinery, wages and the total unconventional increase in production costs.

The mining activist said that the increase in costs sometimes does not follow the free rate of the dollar. "Customs and the market are sometimes monopolized and unconventional parts come into the country because of sanctions," he said. As a result, prices are several times higher than they should be. He stressed that when the cost of production increases, the production of building stones becomes more expensive and housing prices rise.

The need for government support for stone activists

Ahmad Sharifi, the secretary of the Iranian Stone Association, stated that the increase in housing prices in our country has various factors: housing prices return to various parameters such as construction materials prices, land rates and general inflation in the country. It is natural that the price of stone, like the rest of the items, is subject to the decisions of the people, the weakness of sustainable policies and inflation; As a result, the stone has naturally risen in price, and this has significantly affected housing prices.

Referring to the increase in the prices of machinery and mineral parts, the secretary of the Iranian Stone Association said: "When the prices of mineral machinery parts become more expensive, the total price of stone will also increase." Therefore, increasing the price of mineral machinery is one of the important factors in increasing the price of building stone and thus increasing the price of housing.

Saying that the only way to save the country's stone industry is to boost exports, Sharifi said: "We have made many suggestions and requests to the government and the Ministry of Industry, Mines and Trade to consider facilities for stone activists, but no significant action has been taken yet."

The secretary of the Iranian Stone Association continued: "For example, we proposed the formation of four strong export consortiums in four provinces of the country, including Tehran, Isfahan, Markazi and Fars." Companies that are created must also be able to enter the stock market. In the following, we demand that the government pay the initial capital of these companies from the note of the Mining Law so that they can achieve success in the processing sector and enter the target markets.

Referring to the situation of stone in the country, Sharifi said: "The largest source of income for artisans and producers in the field of stone goes back to domestic consumers." In fact, the most accessible source of income for our stone mills is the domestic market, which unfortunately is not doing well today.

He stressed: "Considering the fact that stone is not consumed anywhere in the world as much as in Iran, by focusing more on this market, we can increase revenue sources and move in the direction of production jump."