Iran’s finished steel exports in the first eleven months of the current Persian year (March 2022-February 2023) stood at 2.97 million tonne (mnt), registering a 2% fall compared to the same period last year, according to data from Petrometals.
- Exports of long products were recorded at 2.55 mnt, a y-o-y increase of 2%, while flat product exports fell by 20% y-o-y to 0.42 mnt.
- Exports of billets and blooms totalled 5.12 mnt, up by 11% y-o-y.
- Slab export volumes were recorded at 1.45 mnt, a decrease of 28% compared to the same period last year.
Iran’s steel billets export market has been witnessing limited trading currently amidst news of the Iranian government introducing new policies due to an expected inflation in the country and the increasing trend of the exchange rate. As a result of an upward swing in the exchange rate, the domestic market has become the first preference for billets exporters to sell their material, sources informed.
Additionally, as per reports, the country’s Basic Goods Market Management Working Group of the Ministry of Security has mandated the manufacturers of all steel chain products to offer their entire production in the commodity exchange by the end of May of the next Persian year. This is a “serious blow” to the steel export market.
Outlook
Iran is facing a severe energy shortage due to cold weather in the region. Moreover, the government’s recent announcements about controlling inflation and increasing exchange rates are likely to affect billets export allocations.
Leave a Reply