Iran’s steel production in April 2022, the first month of the current Persian year, registered a marginal 5% increase y-o-y, according to the latest data released by the Iranian Steel Producers Association (ISPA).
- The country produced 2.89 million tonnes (mnt) of semi-finished steel in the month under review, up 3% y-o-y. Billets and blooms accounted for 1.67 mnt of the total semi-finished output, stable y-o-y, while slab production was up by 8% y-o-y to 1.22 mnt.
- The total production of finished steel stood at 1.83 mnt in the month under review, higher by 5% y-o-y.
- Production of long and flat steel stood at 0.96 mnt (up 2%) and 0.87 mnt (up 7%) respectively in April.
- As per ISPA data, direct reduced iron (DRI) production stood at 3.24 mnt in the first month of the Iranian year, up by 3% compared to the same month of the previous year.
Outlook
The problem of power supply is re-emerging in Iran which is likely to keep the country’s steel production restricted in the near future. The government is expected to officially announce some remedial measures soon to overcome this problem. However, as per sources, power curbs most probably will intensify from 22 May 2022 and mills will be required to reduce their electricity consumption to 50% in June, July and September and completely stop production in August.
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