ESCO’s Output, Sales Slow Down

EghtesadOnline: Iran’s veteran steelmaker, Esfahan Steel Company, produced 1.27 million tons of steel products in the first seven months of the current fiscal year (March 21-Oct. 22), posting a 7.06% growth compared with last year’s corresponding period.

News ID: ۷۴۴۳۲۲

05 November 2017

Sales volume during the period, however, was down 5.74% year-on-year to 1.72 million tons, while the value went up 4.72% to 19.6 trillion rials ($490 million).

ESCO’s output and sales growth have slowed down significantly compared to H1, when they grew 74% and 49% respectively YOY, Financial Tribune reported.

Ingot sales made up 513,497 tons of the total seven-month sales valued at 7.32 trillion rials ($183.24 million), followed by beams with 312,726 tons valued at 5.45 trillion rials ($136.3 million), rebars with 295,961 tons valued at 4.92 trillion rials ($123 million), coils with 42,383 tons valued at 710 billion rials ($17.75 million), and “other products” with 10,506 tons valued at 170 billion rials ($4.27 million), according to the latest data published on Codal.ir.

The company’s output for the seventh month of the year (Sept. 23-Oct. 22) stood at 194,869 tons, up 14.35% YOY. ESCO sold 123,275 tons of products valued at 1.12 trillion rials ($28 million), up 10% and 11% in sales volume and value respectively YOY.

The Isfahan-based producer is Iran’s oldest steelmaker and the largest producer of structural steel. It was jointly established in 1965 by Iran and Soviet Union’s Tyazhpromexport Company. Its steel production facilities became operational in 1972.

Latest statistics indicate ESCO was Iran’s second biggest steel exporter in H1–following Khouzestan Steel Company–with 658,849 tons of beams, rebar, coils and other products shipped overseas, up 93% YOY.

Rebar made up 80,150 tons of ESCO’s overall exports, registering a 13% growth YOY, followed by beam and coil with 56,048 tons and 36,003 tons respectively.

Beam shipments were down 27% YOY, while coil exports remained unchanged. Steel products listed as “other” made up 486,648 tons of exports, up 156%.