Steel Exports Down 28% YOY to 2.9 Million Tons in 5 Months

EghtesadOnline: More than 2.98 million tons of finished and semi-finished steel products were exported from Iran during the first five months of the current Iranian year (March 20-Aug. 21), registering a 28.15% decrease compared with the similar period of last year, according to the Iranian Steel Producers Association's latest report.

News ID: ۷۵۱۰۲۶

19 September 2020

Semi-finished steel made up 2.21 million tons or 74.0% of the total export volume to register an 18% year-on-year drop.

Billet and bloom had the lion’s share of semis exports with an aggregate of 1.76 million tons to mark a 7% rise YOY. Slab followed with 452,000 tons, down 56% YOY.

Exports of finished steel products decreased by 49% YOY to reach 744,000 tons.

Long steel products had the biggest share of finished steel exports with a total of 620,000 tons (83.33%) to register a 44% YOY decline.

Rebar was the main exported product in this category with 507,000 tons, registering a YOY fall of 47%, followed by L-beam, T-beam and other types with 57,000 tons (down 34% YOY) and beams with 56,000 (down 21% YOY).

The export of flat steel products amounted to 124,000 tons during the period, indicating a YOY drop of 66%.

Hot-rolled coil grabbed the lion’s share in this category with 82,000 tons to witness a 65% decrease YOY.

Next was coated coil with 26,000 tons, down by 63% YOY, and cold-rolled coil with 16,000 tons, down 72% YOY.

Exports of direct-reduced iron fell 68% YOY to 169,000 tons.

More than 10.36 million tons of finished and semi-finished steel products were exported from Iran in the last Iranian year (ended March 19, 2020) to register a 22.21% YOY increase.

Semi-finished steel made up 6.9 million tons or more than 66.66% of the total export volume, up 26% YOY.

Billet and bloom had the lion’s share of semis exports with a total of 4.83 million tons to mark a 24% YOY rise. Slab followed with 2.07 million tons, up 31% YOY.

Exports of finished steel products increased by 16% YOY to reach 3.45 million tons.

KSC Tops List of Exports

With 607,132 tons of exports during the five-month period (down 32% YOY), Khuzestan Steel Company was Iran's biggest exporter. The company exported 202,625 tons of steel in the month to Aug. 21 to register a year-on-year growth of 16%.

Esfahan Steel Company was the second biggest exporter during the five-month period, as it shipped out 374,514 tons of products, down 19% compared with last year's corresponding period.

ESC experienced a 12% YOY decline to 91,515 tons during the fifth month under review.

Mobarakeh Steel Company ranked third as it exported 146,639 tons during the five months, down 75% compared with last year's corresponding period. The mill’s exports in the month to Aug. 21 amounted to 18,709 tons, down 80% YOY.

The company is the largest steelmaker in the Middle East and North Africa region and one of the largest industrial complexes operating in Iran.

During the period under review, South Kaveh Steel Company exported 211,400 tons of billets, down 43% YOY. The company also exported 10,000 tons of direct-reduced iron, down 78% YOY.

Hormozgan Steel Company exported 189,965 tons of slabs, down 38% YOY. The mill exported 41,888 tons of the product in the fifth month to register a 47% decrease YOY.

Chadormalu Steel Company exported 107,167 tons of billets in the five months, up 3% YOY. However, the company’s exports during the month to Aug. 21 was zero, falling 100% YOY.

The above-mentioned steel producers, which are considered heavyweight steel producers of Iran, exported a total of 1.78 million tons of finished and semi-finished steel products during the period to register a 39% decline compared with last year’s corresponding period.

The mills experienced a year-on-year decline of 21% in exports during the fifth month of the fiscal year (July 21-Aug. 21) to 507,320 tons, latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show.

Imports Up 81%

The new ISPA report also shows that the imports of finished and semi-finished steel products registered an 81.28% rise YOY during the period under review.

Imports of finished steel products stood at 336,000 tons in the five months to register an 81% YOY increase.

The imports mostly included flat steel products with 304,000 tons, up 116% YOY. Hot-rolled coil was the top product in this category with 128,000 tons, up 357% YOY, followed by cold-rolled coil with 90,000 tons, up 96% YOY, and coated coil with 86,000 tons, up 28% YOY.

Imports of long steel products stood at 32,000 tons, indicating a 29% decline YOY. L-beam, T-beam and other types accounted for 15,000 tons of the imports (down 35% YOY), followed by rebars with 12,000 tons, down 29% YOY, and beams with 5,000 tons (with no change YOY).

Semi-finished steels’ share of imports was restricted to a meager amount of 3,000 tons (up 200% YOY). Of the total figure, 2,000 tons were billet and bloom (up 100% YOY) and 1,000 tons were slab, posting a 100% increase YOY.

Apparent Usage

Iran's apparent steel usage—defined as production plus imports minus exports, sometimes also adjusted for changes in inventories—during the five months under review stood at 17.99 million tons, registering a 17.49% rise compared with last year's corresponding period.

The figure stood at 8.4 million tons for finished products, posting a 16% rise year-on-year, according to the Iranian Steel Producers Association.

Long steel products accounted for the lion’s share of finished steel consumption with 4.02 million tons, up 34% YOY.

Rebar grabbed the biggest share in this section with 3.27 million, up 39% YOY, followed by beams with 458,000 tons (up 21% YOY) and L-beam, T-beam and other types with 290,000 tons (up 7% YOY).

Flat steel products accounted for 3.98 million tons of finished steel apparent usage, up 14% YOY.

Among flat steel products, hot-rolled coil had the biggest share of apparent usage with 3.84 million tons (up 10% YOY), followed by cold-rolled coil with 1.21 million tons (up 13% YOY) and coated coil with 679,000 tons (down 5% YOY).

The apparent usage of semis stood at 9.6 million tons, up 19% YOY. The index for billet and bloom together amounted to 5.31 million tons, up 13% YOY, and that of slab raised 26% YOY to 4.29 million tons.

DRI usage was up 15% to 12.71 million tons.