Economy, Business And Markets

Steel Sector Export Target Set at 4m Tons by Yearend

Steel Sector Export Target Set at 4m Tons by YearendSteel Sector Export Target Set at 4m Tons by Yearend

Domestic steelmakers are planning to increase exports to four million tons by the end of the current Iranian year (March 19, 2016) from last year’s two million tons, said deputy minister of industries, mining and trade and head of the Iranian Mines and Mining Industries Development and Renovation Organization, Mehdi Karbasian.

“The ministry and IMIDRO supported domestic manufacturers to maintain a reasonable level of exports over the past year despite low demand in both global and domestic steel markets,” Foolad News quoted Karbasian as saying.

Observing that the current import tariffs are not enough to prevent a market glut, Karbasian said immediate measures are required to prevent steel imports and increase exports. To this end, he suggested further increasing the import tariffs and providing low-interest loans and incentives to producers and exporters.

“The government is well aware of the difficulties faced by domestic mineral and steel producers,” said Karbasian, adding that in a joint effort by the Supreme Audit Court, the Ministry of Industries, Mining and Trade and the Iranian Tax Administration, the two major iron ore producing mines of Golgohar and Chadormalu were granted a two-year moratorium for paying their pending royalties and debts.

According to a recent report by IMIDRO, Iran produced 5.36 million tons of steel during the first four months of 2015, which was mainly contributed by the country’s three major steelmakers: Mobarakeh, Khuzestan and Esfahan steel companies that accounted for 70% of the total output. The steel manufacturers also produced more than 2.68 million tons of steel products, including steel sheets for vehicles, hot-rolled sheets, bundles, wide sheets, I-beams, rebars and pipes.