Economy, Business And Markets

New Steel Plant May Lower Global Billet Prices

New Steel Plant May Lower Global Billet PricesNew Steel Plant May Lower Global Billet Prices

A new steel plant with a production capacity of 1.20 million tpy of steel billet has started operations in Yazd Province of central Iran. Global billet prices, which are already under pressure from Iran-origin shipments to countries such as Indonesia, could be pushed down further by any additional capacity in Iran, Metal Bulletin reported. The new unit, which is owned by Iran’s Chadormalu Mining & Industrial Company and Parsland Mines & Industries Development Company, features an electric arc furnace and a six-strand continuous caster, according to German equipment supplier SMS Group. The CMIC-Pamidco plant is the latest entrant in the Iranian domestic billet market where capacity has been building in recent years. State-supported projects yet to come on stream in the country have a combined billet-making capacity of around 6 million tpy. Iranian slab-making capacity is also set to rise. The Austrian division of technology provider Primetals Technologies is involved in establishing a 2.80 million-tpy slab-making unit in Kerman Province in southern Iran.

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