Iran's apparent steel usage—defined as production plus imports minus exports, sometimes also adjusted for changes in inventories—during the first 10 months of the current Iranian year (started March 20, 2020) stood at 20.23 million tons for semi-finished products, registering a 19% increase compared with last year's corresponding period.
Apparent usage totaled 15.32 million tons for finished products, posting a 20% increase year-on-year, according to the Iranian Steel Producers Association.
Flat steel products accounted for the largest portion of finished steel consumption with 7.43 million tons, up 13% YOY.
Among flat steel products, hot-rolled coil had the biggest share of apparent usage with 7.11 million tons (up 90% YOY), followed by cold-rolled coil with 2.436 million tons (up 12% YOY) and coated coil with 1.43 million tons (down 2% compared with the same period of last year).
Long steel products accounted for 7.89 million tons of finished steel apparent usage, up 27% YOY.
Rebar grabbed the biggest share in this section with 6.4 million, up 31% YOY, followed by beams with 918,000 tons (up 16% YOY) and L-beam, T-beam and other types with 569,000 tons (up 15% compared with the same period of the last year).
As for semis, the apparent usage of "billet and bloom" reached 11.87 million tons, up 20% YOY. Usage of slab increased by 16% to 8.3 million tons during the first nine months of the current fiscal year.
DRI usage increased by 9% to 24.8 million tons, during the period under review.
In view of the prevailing stagnation in the country's economy, especially in civil projects and construction sector, experts believe that the rise in apparent usage is mostly the result of speculative activities and hoarding.
Chilanonline, a specialized news website, claims that the rise might be because of the growth in illegal steel exports. As per the regulations, steelmakers are required to supply domestic market to specified extents in case they want to export their products.
More than 7.5 million tons of finished and semi-finished steel products were exported from Iran during the first 10 months of the current fiscal year (March 20-Jan. 19), the Iranian Steel Producers Association’s latest report says.
Semi-finished steel made up 5.13 million tons of the total export volume, down 12% year-on-year.
Billet and bloom had the lion’s share of semis exports with an aggregate of 3.92 million tons – 4% less than the corresponding period of last year’s 4.09 million tons. Slab came next with 1.2 million tons, down 30% YOY. Iranian steelmakers exported 1.72 million tons of slab during the same period of last year.
Exports of finished steel products declined by 20% to 2.373 million tons.
Rebar accounted for the largest portion of finished steel products exported from Iran during the 10-month period under review, with 1.48 million tons. The volume of Iran’s rebar exports experienced a 22% YOY fall.
Hot-rolled coil followed with 476,000 tons, registering a 2% YOY growth.
Beams exports stood at 151,000 tons, down 4% YOY. Nearly 159,000 tons of L-beam, T-beam and other types were exported from Iran during the 10-month period, recording an 18% decline YOY.
Coated coil with 73,000 tons, down 46% YOY, and cold-rolled coil with 26,000 tons, down 76% YOY, were other finished steel products exported from Iran.
The export of direct-reduced iron dropped by 25% YOY to 666,000 tons.
Unlike exports, imports of finished and semi-finished steel products marked an increase during the period under review compared with last year’s corresponding period. The ISPA report shows steel imports stood at 805,000 tons, up 102% YOY.
Semis imports, which only consisted of billet and bloom, made up 5,000 tons of the total figure, up 67% compared with the same period of last year. Billet and bloom imports amounted to 4,000 tons, up 100%. Import of slab remained unchanged at 1,000 tons.
Imports of finished steel jumped by 102% YOY to 800,000 tons. The imports mostly included HRC with 308,000 tons, up 360%; CRC with 226,000 tons, up 93%; coated coil with 192,000, up 18%; L-beam, T-beam and other types with 41,000 tons, up 273%; rebar with 24,000 tons, down 17%; and beams with 9,000 tons, unchanged compared with the same period of last year's figures.
Iranian steelmakers produced 43.71 million tons of semi-finished and finished steel products during the 10 months to Jan. 19.
Iran's output of direct reduced iron grew by 8% to 25.55 million tons.
ISPA has yet to release a report on total steel production during the 10 months under review. Yet, a report by the Iranian Mines and Mining Industries Development and Renovation Organization on heavyweight producers shows these mills collectively produced 18.75 million tons of semi-finished products during the period, recording a 7% growth year-on-year.
A total of 2 million tons of semi-finished steel were produced by these mills during the 10th month of the fiscal year, up 9% year-on-year.
