Iran's apparent steel usage—defined as production plus imports minus exports, sometimes also adjusted for changes in inventories—during the first eight months of the current Iranian year (March 20-Nov. 20) amounted to 16.81 million tons for semi-finished products, registering a 21% increase compared with last year's corresponding period.
Apparent usage totaled 13.56 million tons for finished products, posting an 18% increase year-on-year, according to the Iranian Steel Producers Association.
Flat steel products accounted for the largest portion of finished steel consumption with 6.12 million tons, up 13% YOY.
Among flat steel products, hot-rolled coil had the biggest share of apparent usage with 5.88 million tons (up 9% YOY), followed by cold-rolled coil with 1.96 million tons (up 15% YOY) and coated coil with 1.14 million tons (up 2% compared with the same period of last year).
Long steel products accounted for 6.27 million tons of finished steel apparent usage, up 26% YOY.
Rebar grabbed the biggest share in this section with 5.07 million, up 29% YOY, followed by beams with 750,000 tons (up 20% YOY) and L-beam, T-beam and other types with 448,000 tons (up 1% compared with the same period of last year).
As for semis, the apparent usage of billet and bloom together amounted to 9.97 million tons, up 23% YOY. The usage of slab also increased by 19% to 6.83 million tons during the first eight months of the year.
DRI usage was up 14% to 20.3 million tons.
Taking into account the ongoing stagnation in the country's economy, especially in civil projects and construction sector, many experts believe that the rise in apparent usage is mostly due to speculative activities and hoarding.
Chilanonline, a specialized news website, claims that the rise might be because of the growth in illegal steel exports. Based on the regulations, steelmakers are required to supply domestic market up to a specified volume, in case they want to export their products.
10% Rise in Production
Iranian steelmakers produced 35.23 million tons of semi-finished and finished steel products during the first eight months of the current fiscal year to register a 10.7% year-on-year increase.
Semis accounted for 20.59 million tons of the total output, up 13% YOY.
Billet and bloom made up 12.84 million tons of semi-finished production whereas slab output hit 7.74 million tons to register a 16% and 8% YOY rise respectively.
The output of finished steel increased by 8% YOY to 14.63 million tons.
Long steel products had 7.44 million-ton share in the output of finished steel products, posting a 10% growth YOY.
Rebar production stood at 6.04 million tons (up 11% YOY). It was followed by beams with 863,000 tons (up 17% YOY) and L-beam, T-beam and other types with 543,000 tons (down 2% YOY).
Production of flat steel picked up during the seven-month period, increasing by 6% year-on-year to 7.18 million tons.
Hot-rolled coil made up 6.02 million tons of the production in this category, showing a 5% rise compared with the similar period of last year, followed by cold-rolled coil with 1.819 tons to register a 6% YOY rise and coated coil with 1.049 tons (down 4%).
19% Decline in Exports
A total of 5.466 million tons of finished and semi-finished steel products were exported from Iran during the eight months to register a 19.4% year-on-year decline.
Semi-finished steel made up 3.78 million tons of total export volume, down 13% YOY.
Billet and bloom had the lion’s share of semis exports with an aggregate of 2.78 million tons – 3% less than the previous year corresponding period's 2.95 million tons. Slab came next with 914,000 tons, down 36% YOY. Iranian steelmakers exported more than 1.4 million tons of slab during the same period of the previous year.
Exports of finished steel products declined by 30% to 1.67 million tons during the period.
Rebar accounted for the largest portion of finished steel products with 983,000 tons. The volume of Iran rebar exports experienced a 37% fall compared with the same period of last year.
Hot-rolled coil came next with 371,000 tons, registering no change compared with the first eight months of the previous fiscal year.
Beams exports amounted to 120,000 tons during the period under review, down 4% YOY. Nearly 125,000 tons of L-beam, T-beam and other types were also exported from Iran during the period, recording a 14% decline YOY.
Coated coil with 55,000 tons, down 54% YOY, and cold-rolled coil with 25,000 tons, down 73% YOY, were the other finished steel products exported from Iran.
Exports of direct-reduced iron dropped by 43% YOY to 403,000 tons, ISPA figures show.
69% Rise in Imports
Unlike exports, imports of finished and semi-finished steel products saw an increase during the period compared to last year’s corresponding period.
The ISPA report shows March 20-Nov. 20 steel imports stood at 615,000 tons, up 69% YOY.
Semis imports, which only consisted of billet and bloom, made up 4,000 tons of the total figure, up 33% compared with the same period of last year. Billet and bloom imports amounted to 3,000 tons, up 50%. Slab imports remained unchanged at 1,000 tons.
Imports of finished steel jumped by 69% YOY to 611,000 tons. Imports mostly included HRC with 237,000 tons, up 323%; coated coil with 151,000 tons, up 1%; CRC with 168,000 tons, up 85%; L-beam, T-beam and other types with 30,000 tons, down 12%; rebar with 18,000 tons, down 22%; and beams with 7,000 tons, down 7% compared to the same period of last year's figures.
