Graphite electrode import in Iran increased substantially by 116% in line with increase in crude steel production in CY’17
Iran, one of the largest importer of graphite electrode has imported around 35,500 MT in CY’17, registered a growth of around 116% Y-o-Y against 16,400 MT imported in CY’16. Major exporters to Iran during the period were China and India.
China being the largest exporter of graphite electrode to Iran has exported around 29,700 MT in CY’17. Import from China increased dramatically by around 200% in CY’17 against 7,500 MT imported in CY’16. On parallel lines, India exported around 13,300 MT graphite electrode to Iran during CY’17, registered a growth of 50% against 8,900 MT exported by India to Iran in CY’16.
Graphite electrode is an indispensable material used in electric arc furnace steelmaking, which is the more efficient and less expensive steelmaking method compared to blast furnaces.
As per Planner, One of the major reason for increase in graphite electrode import during current year is majority of steelmakers in Iran uses graphite electrode as raw material in steelmaking process, as 87% of total crude steel production comes from EAF route, whereas only 13 % crude steel production comes through blast furnace route.
Also this year, Graphite Electrode prices hiked by around 10 times due to shortage in supply, which worried Iranian steelmakers to fall short of material as not many steelmakers in Iran has a long term contract with suppliers.
Another reason for increase in graphite electrode import in Iran is crude steel production of Iran reached 21.73 MnT in CY’17, registered a growth of around 21% Y-o-Y against 17.90 MnT imported in CY’16.
In order to produce 1 MT of steel, around 1.8 to 2 KG graphite electrode is used. So with the increase in crude steel production requirement of graphite electrode also increased, resulted into sourcing it from Imports.
Iran to build Graphite Electrode Plant
As per Seyed Hossein Ahmadi, managing director of Khorasan Steel Complex Co. “Several Iranian companies have set up a joint venture to build Iran’s first graphite electrode manufacturing plant in light of the current shortage”
He added “Some 200 million will be invested by Novin Electrode Company, a joint venture between Iranian state mines and metals holding company IMIDRO, Mobarakeh Steel Co and Khorasan for the production of graphite electrodes”. The plant be launched within one or two years since the shortage of graphite electrodes has become a major challenge for the steel industry in Iran.
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