According to the statistics of Iran Steel Producer Association (ISPA), steel companies of the country produced 14.20 MnT of semi-finished steel in first 8 month of current Persian year against 12.31 MnT in previous year. Of this, 3.66 MnT tons were produced by the private sector.
In addition, during the first eight months of this year, 12.99 MnT of finished steel was manufactured in Iran 11.95 MnT produced last year, registered a growth of 9% Y-o-Y.
The nation exported around 4.22 MnT of semi-finished steel in current Persian year against 2.29 MnT exported last year registered a growth of 84% Y-o-Y. On other hand export of finished steel decreased by 35% Y-o-Y. The nation exported around 0.94 MnT in current Persian year against 1.45 MnT in previous year.
Iran imported around 0.03 MnT billet in current year and 1.49 MnT of finished steel in current year against 0.16 MnT and 2.19 MnT imported in last year.
Based on this, steel industry experts believe that domestic steel suppliers are necessary in Iran, while at the same time they believe that preventing foreign buyers from looking into alternate market is also very much needed. Iran has to come up with a new plan to prevent foreign buyers from inflammation in the domestic market.
“We exported about 4 MnT in the last Persian year, and our import was slightly more than exports,” said Reza Zaer, an expert on steel industry pointing out to increase exports and production of steel. He added “But since this year, the per capita consumption of steel increased in the country, controlling export seems to be necessary.”
Last year, about 17 MnT of steel was produced in the country, per capita consumption was about 210 KG per person, while Reza Zaer predicted this year’s consumption to be around 250 KG per person. So this year more steel is needed.
According to the expert in the steel industry, “if we want to maintain the export process, we must increase production and have to fully utilize the steel production capacity of Iran. It is possible only when if we have ability to supply both to the domestic market and foreign markets.
Mr Reza added “Current private steel plants and induction furnace plants are not utilizing the complete production capacity in the nation, also there are few companies that have been shut down in the past years due to low steel prices and stagnation.
Last year, it turned out to seem that in the event of a steady increase in world prices and justifying exports, these sectors could be added to the production cycle, so that domestic demand could be fulfilled and the export flow continued as it happened previously.
Steel makers produced about 17 MnT of steel last year, while the nominal capacity of the steel industry in Iran is about 21 million tons.
In this way, it seems that if export attractiveness is steady due to the growth of world prices, it would be possible to utilize the complete steel production capacities of the steel industry.
In order to prevent the supply shocks in domestic market and to strengthen the export and values of steelmakers. Steelmakers must create this equilibrium point in exporting and supplying steel in the domestic market.
Inputs taken from Foolad News
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