Iran is planning to ban import of HRC as the country’s largest steelmaker Mobarakeh steel company is set to add another 4.2 mn t pa hot-rolling capacity within the next three years, eliminating the need for overseas material, Hossein Modarres Khiabani, acting head of Iran’s Industry, Mining, and Trade Ministry said recently.
Khiabani did not indicate any timeline for banning HRC imports. The ban is not likely to make much of a dent in global steel trade as import volumes are modest. Iran imported 189,927 mt HRC in the Persian year 2018-19, importing from UAE (110,000 mt), Turkey (22,000 mt) and South Korea (20,800 mt), according to Iranian customs data.
Iran is a major exporter of steel products. In 2019, it’s net exports were at 7.9 mn t, making it the seventh-largest net exporter in the world, according to the World Steel Association.
Additional HRC capacity at the Mobarakeh plant could help lift Iran’s steel exports further.
Mobarakeh is planning to start its additional HRC capacity within 900 days which will take its total rated HRC capacity to 9 mn t/yr. “After the installation of the second unit, the nation would be capable of meeting the domestic HRC demand for automotive industries, oil and gas industries and piping and home appliances industries,” said Khiabani.
Iran increased HRC output by 4% in the previous Persian year (Mar’19-Mar’20) to 8.23 mn t. The country has already produced 1.57 mn t. HRC during the first two months of the current Persian year. Major producers of HRC during the period were MSC at 0.93 mn t, followed by Saba steel (0.26 mn t) and Ahwaz Rolling and Pipe Mills Co.( 0.06 mn t).
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