Iran's Q1 Steel Exports Decline 43% to 1.4 Million Tons

EghtesadOnline: More than 1.42 million tons of finished and semi-finished steel products were exported from Iran during the first quarter of the current Iranian year (March 20-June 20) to register a 43% decline compared with the similar period of the year before, according to the Iranian Steel Producers Association's latest report.

News ID: ۷۵۰۵۰۱

22 July 2020

Semi-finished steel made up 1.04 million tons or more than 72.9% of the total export volume to register a 27% year-on-year drop.

Billet and bloom had the lion’s share of semis exports with an aggregate of 837,000 tons to mark a 7% decline YOY. Slab followed with 204,000 tons, down 61% YOY.

Exports of finished steel products decreased 49% YOY to reach 388,000 tons.

Long steel products had the biggest share of finished products’ exports with a total of 343,000 tons (88.4%) to register a 39% YOY decline.

Rebar was the main exported product in this category with 283,000 tons, registering a YOY fall of 41%, followed by L-beam, T-beam and other types with 33,000 tons (down 27% YOY) and beams with 27,000 (down 27% YOY).

The export of flat steel products amounted to 45,000 tons during the period, indicating a YOY drop of 77%.

Hot-rolled coil grabbed the lion’s share in this category with 21,000 tons to witness an 84% decrease YOY.

Next was coated coil with 15,000 tons, down by 57% YOY, and cold-rolled coil with 9,000 tons, down 71% YOY.

Exports of direct-reduced iron fell 91% YOY to 20,000 tons. The steel mills did not export any DRI in the third month to June 20.

A previous ISPA report showed Khuzestan Steel Company had the lion's share of ingot exports by heavyweight Iranian steel mills, as it exported 211,782 tons of the semi-finished product in Q1, down by 48% YOY. It was followed by South Kaveh Steel Company with 121,619 tons (down 39% YOY), Esfahan Steel Company (ESCO) with 122,030 tons (down 30% YOY), Chadormalu Steel Company with 89,700 tons (up 232% YOY), Arfa Steel Company with 30,626 tons (down 32% YOY) and Khorasan Steel Company with 30,000 tons (unchanged).

Hormozgan Steel Company topped the list of slab exporters, as it exported 113,110 tons of the product during the three-month period, down 43% YOY. KSC followed with 60,577 tons, down 57% YOY, and Mobarakeh Steel Company with 30,800 tons was down 83% YOY.

ESCO was the sole exporter of rebar among heavyweight steel mills with 45,992 tons, down 41% YOY.

Mobarakeh Steel Company had the lion's share of hot-rolled coil exports with 18,100 tons, while Oxin Steel Company exported 939 tons to observe a 225% jump YOY.

ESCO was also the sole exporter of beams with 11,851 tons, down 3% YOY.

MSC was also the sole exporter of CRC and coated coils, as it exported 9,600 tons of the products in Q1 to register a 55% YOY increase.

It also exported 4,400 tons of cold-rolled coil during the period, down 81% YOY.

Finished Steel Imports Double

The new ISPA report also shows imports of finished steel products stood at 191,000 tons in Q1, to register a 101% YOY increase.

Only 1,000 tons of billet and bloom formed semi-finished steels’ share of imports during the three months to June 20, similar to the corresponding period of last year.

The imports mostly included flat steel products with 179,000 tons, up 163% YOY. Hot-rolled coil was the top product in this category with 87,000 tons, up 314% YOY, followed by coated coil with 48,000 tons, up 50% YOY, and cold-rolled coil with 44,000 tons, up 193% YOY.

Imports of long steel products stood at 12,000 tons, indicating a 56% decline YOY. L-beam, T-beam and other types accounted for 7,000 tons of the imports (down 50% YOY), followed by rebars with 5,000 tons, down 44% YOY.

There was no import of beams in Q1, while 4,000 tons of the product were imported during the corresponding period of last year.

Q1 Output at 12.5m Tons

Iranian steelmakers produced 12.5 million tons of semi-finished and finished steel products in Q1 to register a 2.21% year-on-year increase.

According to the Iranian Steel Producers Association’s latest report, semi-finished steel made up 7.14 million tons of the total output, up 3% YOY.

Billet and bloom made up 4.12 million tons of semi-finished production while slab output hit 3.02 million tons to register a 3% decline and a 12% rise respectively YOY.

As for finished steel, the output increased by 1% YOY to reach 5.33 million tons.

Flat steel products had the lion’s share of finished steel production with 2.67 million tons, down 1% YOY. Hot-rolled coil made up 2.3 million tons of the production in this category, showing a 1% rise compared with the similar period of last year, followed by cold-rolled coil with 655,000 tons that also registered a 1% rise YOY and coated coil with 322,000 tons (down 25% YOY).

Long steel products had a 2.66 million-ton share in the output of finished steel products, posting a 4% growth YOY. Rebar had a major share with 2.17 million tons (up 5% YOY), followed by beams with 297,000 tons (down 1% YOY) and L-beam, T-beam and other types with 193,000 tons (down 5% YOY).

With 4.72 million tons of output, Mobarakeh Steel Company had the largest share of steel production in Iran during the first three months of the current fiscal year.

Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.

According to a report by the Iranian Mines and Mining Industries Development and Renovation Organization, the company produced over 2.12 million tons of finished steel during the period, to register a 4% decline compared with last year’s corresponding period.

In addition, close to 2.6 million tons of semi-finished products were produced by MSC, up 10% year-on-year.

In terms of finished steel production, MSC was followed by ESCO with 571,121 tons (down 4% YOY), Khouzestan Oxin Steel Company with 230,787 tons (up 8% YOY), Khorasan Steel Company with 117,401 tons (down 32% YOY) and Azarbaijan Steel Company with 89,213 tons (up 11% YOY) during the first quarter of the current fiscal year.

In terms of semis production, MSC was followed by KSC with close to 1.03 million tons (up 4% YOY), Esfahan Steel Company with 586,009 tons (down 7% YOY), Chadormalu Steel Company with 254,165 tons (down 3% YOY), South Kaveh Steel Company with 232,596 tons (down 21% YOY) and Khorasan Steel Company with 218,037 tons (down 21% YOY).

Direct-reduced iron production stood at 8.13 million tons in Q1, indicating a 12% growth YOY.