More than 8.8 million tons of finished and semi-finished steel products were exported from Iran during the first 10 months of the current Iranian year (March 21, 2019-Jan. 20) to register a 38.27% increase year-on-year, according to the Iranian Steel Producers Association's latest report.
Semi-finished steel made up 5.82 million tons or more than 66.11% of the total export volume, up 47% YOY.
Billet and bloom had the lion’s share of semis exports with an aggregate of 4.09 million tons to mark a 63% YOY rise. Slab followed with 1.72 million tons, up 18% YOY.
Exports of finished steel products increased 25% YOY to reach 2.98 million tons.
Long steel products had the biggest share of finished products’ exports at 2.27 million tons (76.1%) to register a 36% growth YOY.
Rebar was the main exported product in this category with 1.91 million tons, registering a 49% increase YOY, followed by L-beam, T-beam and other types with 195,000 tons (up 19% YOY) and beams with 157,000 (down 25% YOY).
Flat steel products had a 713,000-ton share in exports of finished steel products, down 2% YOY.
Hot-rolled coil grabbed the lion’s share in this category with 467,000 tons to register a decrease of 15% YOY.
Next was coated coil with 136,000 tons, down 9% YOY, and cold-rolled coil with 110,000 tons, up by 244% YOY.
Exports of direct-reduced iron increased by 76% YOY to 886,000 tons.
This is while exports of pellets amounted to 2.41 million tons in 10 months, as concentrate exports stood at 3.57 million tons, indicating a 19% and 2% rise respectively YOY.
“Iran's steel exports are expected to reach at least 10 million tons by the end of the current Iranian year (March 19) to earn the country between $4-5 billion,” says Chairman of Iranian Mines & Mining Industries Development & Renovation Khodadad Gharibpour.
56.06% Decline in Imports
Imports of all steel products saw a considerable decline.
The ISPA report shows semi-finished and finished steel imports stood at 399,000 tons during the 10 months to Jan. 20, to register a 56.06% decline YOY.
Import of semi-finished products amounted to only 3,000 tons during the 10 months, down 89% YOY.
This is while imports of finished steel dropped 55% YOY to 396,000 tons.
The imports mostly included flat steel products with 347,000 tons, down 55% YOY. Coated coil was the top product in this category with 163,000 tons, down 27% YOY, followed by CRC with 117,000 tons, down 54% YOY, and HRC with 67,000 tons, down 76% YOY.
Imports of long steel products stood at 49,000 tons, indicating a 58% decline YOY. Rebar topped the list in this category with 29,000 tons, down 19% YOY, followed by L-beam, T-beam and other types with 11,000 tons (down 81% YOY) and beams with 9,000 tons (down 61% YOY).
Production Capacity Expected to Reach 38m Tons/Year
Gharibpour expects Iran’s steel production capacity to reach 38 million tons by the end of the current fiscal year and the actual crude production to exceed 28 million tons, Fars News Agency reported.
Jafar Sarqeini, former deputy industries minister, put Iran's steel production capacity at 35 million tons per year in December.
The official noted that several steel units with an overall capacity of 10 million tons are currently under construction with a physical progress of more than 50%, while another 10 million tons of capacity have been planned.
“All these efforts are aimed at reaching the target of 55 million tons of steel in the 20-year Vision Plan [by 2025],” he was quoted as saying.
“For the past three to four years, steel production growth in Iran has always been higher than the global average.”
IMIDRO also expects Iran’s steel production capacity to reach 43.6 million tons by the end of the next Iranian year (March 20, 2021), while actual production is estimated to hit 31.1 million tons to utilize 71% of the nominal capacity.
It expects direct-reduced iron production capacity to reach 37.2 million tons by the end of next fiscal year, while the actual production is estimated to reach 33.6 million tons to utilize 90% of the nameplate capacity.
Pellet production capacity is expected to reach 66.4 million tons, as actual production is predicted to total 55.3 million tons, realizing 83% of the capacity.
Concentrate production capacity is estimated to hit 68.5 million tons, while the actual production would reach 58.1 million tons, realizing 85% of the capacity by March 20, 2021.
