Iran’s Steel Exports Up by 23%

Iranian Deputy Minister of Industry, Mine and Trade Jafar Sarqini said on Tuesday that Iran’s annual steel exports now amount to around $1.6 billion, registering a 23 percent increase in terms of weight in the current Iranian year (started on March 21).

Jafar Sarqini, while visiting Shahroud Steel development plan, added that the total value of Iran’s annual steel exports stands at $1.6 billion.

He said 12.5 million tons of steel was exported in the first six months of the current Iranian year (Mar. 21 to Sep. 21), adding that the total capacity of steel production in Iran stands at 34 million tons.

According to him, the steel exports enjoyed a 13 percent increase in terms of value, and 23 percent increase in terms of weight, this year.

The country’s steel chain capacity is estimated at 205 million tons, he said, adding that the capacity has fortunately reached a balance.

The deputy minister further stated that steel production is estimated to reach 55 million tons by 2025.

Earlier in last week, World Steel Association announced that Iranian steel production rose to 20.6 million tons in the first 10 months of 2018 showing a 19 percent year-on year increase.

Iran is now the world’s 11th biggest steel producer, ranked between Italy with 20.61 million tons and Taiwan with 19.24 million tons.

Iran’s thriving steel industry is the target of US sanctions imposed in August and the growth shows the country's bid to keep expanding the industry is not a fluke.

Last month, the Trump administration announced sanctions on Mobarakeh Steel Company, the largest steel maker in the Middle East and North Africa and one of the largest industrial complexes operating in Iran.

Iran’s steel industry has been growing rapidly in recent years in line with the country’s ambitious plan to raise output to 55 million tons per year by 2015.

Last October, the European Union decided to hit hot-rolled steel from Iran with trade tariffs despite initial opposition to punitive measures by European governments.

The country, however, remains unfazed. In June, Iran launched commercial production of HR coils, steel sheet and ribbed sheet at Mobarakeh Steel Company, with a capacity of 1.6 million tons.

The opening of the new mill in central Isfahan offset a cut in sales of hot-rolled (HR) steel coils in the face of unilateral US sanctions.

It came as steel traders said that Russian steelmakers Severstal and MMK as well as ArcelorMittal Temirtau, a Kazakh unit of the world’s largest steelmaker, were cutting back their sales to Iran.

HR coil is used in the pipes and profiles segment, which is a large steel end-use sector in the country.

In January, Iran brought online its third steel plant which uses domestic technology for production of direct reduced iron (DRI) or sponge iron.

source: FARS News Agency