Iran: Steel exports of major mills decline by 60% in first two months of current Iranian year

The exports of heavyweight steel producers of Iran stood at 809,665 MT, during the first two months of the Iranian year; (21 Mar’20 – 20 May’20). During May’20, the same was recorded at 393,753 MT. According to the Iranian Steel Producers Association’s report, the exports have registered a significant decline of 60%, when compared with last year’s corresponding period.

With 105,017 MT of ingot exports, Khuzestan Steel Company was the top exporter, during the period under consideration. Khuzestan Steel Company was followed by South Kaveh Steel Company, and Esfahan Steel Company, with 90,891 MT, and 68,021 MT of exports respectively.

The sharp decline in exports was primarily due to the COVID-19 outbreak, and the export guidelines issued by the Iranian government during the period under consideration has supported the event. However, the current acting Industry minister of Iran; Mr. Modares Khiabani, has rolled out the new export guidelines for steel exports, which mentions the relaxation of steel exports. If sources to be believed, the mills now can export up to 40% of their production, earlier this figure was 25% of the production. However, the formal release of these guidelines is still awaited. Hence, in the coming month, the export figures are expected to rise.

Below table shows the product wise exports from Iran-

Source: SteelMint Research & Financial Tribune