Iran: Steel production rises by 15%, y-o-y, in Mar-Jul’22

Iran’s steel production in the first four months of the current Persian year (March-July, 2022) registered a significant 15% increase y-o-y, according to latest data released by the Iranian Steel Producers Association (ISPA).

• The country produced 10.58 million tonnes (mnt) of semi-finished steel in the period under review, up 11% y-o-y. Billets and blooms accounted for 6.28 mnt of the total semi-finished output, up 9%, y-o-y, while slabs production increased by 13% y-o-y to 4.30 mnt.
• Total production of finished steel stood at 7.42 mnt in the period under review, higher by 15% y-o-y.
• Production of long and flat steel stood at 4.19 mnt (up 14%) and 3.23 mnt (up 15%), respectively in March-July, 2022.
• As per ISPA data, direct reduced iron (DRI) production stood at 12.54 mnt in the first four months of the Iranian year, an increase of 19% compared to the same period last year.

Outlook

Amid power supply curbs, Iran’s steel production is likely to remain limited in the near term. However, the ease in restrictions could be the deciding factor. The Ministry of Energy has given approval for easing power restrictions in the country and steel mills will be supplied electricity from 11 pm to 8 am without any disruption.