Iran is set to regulate exports of DRI (Direct Reduced Iron) in order to check impact of falling Iranian currency, which is the result of fresh US sanctions. Notably Iranian Rial has hit all time low to 100,000 rials per USD, SteelMint learned from market sources.
“Iranian government has restricted exports of DRI. Only producers can export it, provided they have to first offer it on IME (Iranian Mercantile Exchange) for domestic buyers and only unsold quantities can be exported and that too after taking permit from the government. Traders are completely banned from exporting DRI. “said Mr Keyvan Tehrani, a renowned trader based in Iran.
Iran government wants to make sure that country has enough supply of DRI which is by far the main source of raw material for EAF and IF units,he further added.
Iran is the second largest producer of DRI after India. Country produces 22.56 MnT every year, out of which 0.71 MnT get exported.
Iran produces 21.25 MnT steel, of which 85-90% is produced using DRI and rest through scrap
Another trader highlighted, domestic prices of DRI has increased sharply in last few months due to depreciating currency which has made exports attractive. Government fear that this may lead to imbalance in supply and demand.
Major DRI Producers of Iran
| Major DRI Producers | Persian Year 2016-17 |
Persian Year 2017-18 |
| Mobarekah Steel | 6,599,127 | 7,325,031 |
| Khouzestan Steel | 3,697,466 | 3,993,263 |
| Hormozgan Steel | 1,316,146 | 1,500,406 |
| South Kaveh Steel | 1,145,367 | 1,580,607 |
| Khorasan Steel | 1,054,985 | 1,244,882 |
| Saba Steel | 1,055,760 | 1,129,663 |
| Iranian Ghadir Iron and Steel Company | 854,262 | 811,549 |
| MIDHCO | 698,951 | 761,857 |
| Sefid Dasht Steel Complex | 112,487 | 480,319 |
| ESCO | 75,636 | 133,875 |
| Other | 1,681,814 | 3,598,548 |
| Total | 18,292,000 | 22,560,000 |
Source: IMIDRO
Quantity in MT
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