Business And Markets

Steel Projects to Be Revised to Enhance Efficiency

Steel Projects to Be Revised to Enhance Efficiency
Steel Projects to Be Revised to Enhance Efficiency

The deputy minister of industry, mine, and trade said a committee including experts from the private sector and mine associations would revise seven major steel projects which were okayed without necessary technical studies.

"The previous government attempted to balance development across the country and increase employment in less developed areas, and that is why the officials hastily accepted the projects", said Mohammad-Jafar Sarqini. 

Many of the steel production projects initiated under the previous government have no economic justification and the large investment potential could yield more employment in other sectors, added Sarqini. 

Touching upon the country's high demand for iron rods and steel ingot, the official stressed that the administration is determined to economize the steel industry by increasing efficiency in steel plants as well as expanding iron ore granule production units.

Sarqini went on to say that implementation of current steel projects in the country needs at least 8.5 million tons of iron ore granules. 

Steel experts believe considering the country's 2025 vision which predicts production of 30 million tons of steel, the steel plants are required to make necessary changes in order to increase their efficiency.

"The seven projects the previous government initiated have been started in regions with severe water shortages", noted a member of Iran Steel Association, Bahador Ehramian.

Ehramian insists that after revising the projects, those which are recognized as uneconomical should be stopped.

During the past few years, introduction of the government's national housing project known as Maskan-e Mehr caused a sudden surge in market demand for iron rods and iron bars, but steel experts say the demand will decrease during the next few years and there will be a balance between the demand and production of steel ingot and iron rods. 

All in all, almost all the experts in the field unanimously believe it is necessary to systematically revise recent steel projects as well to accelerate expansion of iron ore granule production units.

Becoming self-sufficient in steel production in 2009, Iran plans to increase its annual steel output to 55 million tons by the end of the Fifth Five-Year Development Plan (March 2011-March 2015). 

Iran is the biggest steel producer in the Middle East and North Africa. The country’s main steel mills are located in Isfahan and Khuzestan provinces. In the Iranian month of Khordad (May 22 – June 21), some 1.3 million metric tons of steel ingot was produced in the country.