Iran’s Steel Exports to Reach $4-5 Billion in Fiscal 2019-20

EghtesadOnline: Iran's steel exports are expected to reach at least 10 million tons by the end of the current Iranian year (March 19) to earn the country between $4-5 billion, says Chairman of Iranian Mines & Mining Industries Development & Renovation Khodadad Gharibpour.

News ID: ۷۸۵۳۴۷

04 February 2020

Latest data provided by the Iranian Steel Producers Association show a total of 7.8 million tons of finished and semi-finished steel products were exported from Iran during the first nine months of the current Iranian year (March 21-Dec. 21) to register a 40% year-on-year increase.

Semi-finished steel made up 5.06 million tons or more than 64.95% of the total export volume, up 38% YOY, Financial Tribune reported.

Billet and bloom had the lion’s share of semis exports with an aggregate of 3.52 million tons to mark a 54% YOY rise. Slab followed with 1.54 million tons, up 12% YOY.

Exports of finished steel products increased 27% YOY to reach 2.72 million tons.

Long steel products had the biggest share of finished products’ exports with a total of 2.07 million tons (76.1%) to register a 41% growth YOY.

Rebar was the main exported product in this category with 1.75 million tons, registering a 55% increase YOY, followed by L-beam, T-beam and other types with 173,000 tons (up 24% YOY) and beams with 146,000 tons (down 26% YOY).

Flat steel products had a 654,000-ton share in exports of finished steel products, down 4% YOY.

Hot-rolled coil grabbed the lion’s share in this category with 425,000 tons to register a decrease of 20% YOY.

Next was coated coil with 130,000 tons, up 4% YOY, and cold-rolled coil with 99,000 tons, up by 267% YOY.

Exports of direct-reduced iron increased 91% YOY to 823,000 tons.

Gharibpour also expects Iran’s steel production capacity to reach 38 million tons by the fiscal yearend (March 19), and the actual crude production to exceed 28 million tons, Fars News Agency reported.

Deputy Industries Minister Jafar Sarqeini put Iran's steel production capacity at 35 million tons per year in December.

The official noted that several steel units with a total capacity of 10 million tons are currently under construction with a progress of over 50%, while an additional capacity of 10 million tons have been planned.

“All these efforts are aimed at reaching the target of 55 million tons of steel in the 20-year Vision Plan [ending March 2025],” he was quoted as saying by Fars News Agency.

For the past three to four years, steel production growth in Iran has always been higher than the global average, Sarqeini added.

IMIDRO also expects Iran’s steel production capacity to reach 43.6 million tons by the end of the next Iranian year (March 20, 2021), while actual production is estimated to hit 31.1 million tons to utilize 71% of the nominal capacity.

It expects direct-reduced iron production capacity to reach 37.2 million tons by the end of next year, while actual production is estimated to reach 33.6 million tons to utilize 90% of the nameplate capacity.

Pellet production capacity has been projected to reach 66.4 million tons, while actual production is predicted to total 55.3 million tons, realizing 83% of the capacity.

Concentrate production capacity is estimated to hit 68.5 million tons, while actual production would reach 58.1 million tons, realizing 85% of the capacity by March 20, 2021.