Economy, Business And Markets

Steel Export Data Disappointing

Steel Export Data DisappointingSteel Export Data Disappointing

Iran supplies only 5% of Iraq’s annual demand for steel (8 million metric tons), a member of the Iranian Steel Producers Association (ISPA) told IRNA, adding that Iran’s share in Iraq’s steel market can increase given the friendly ties between the two neighbors.

The obstacles in the way of money transfer due to anti-Iran sanctions have been the main reason why Iran exports such a meager amount of steel to Iraq. Iran exports only 400,000 metric tons of steel to its Arab neighbor while Turkey has seized the opportunity and is now a major supplier of steel to the Iraqi market, said Ahmad Donyanoor, an ISPA member.

The rate of Iran’s steel exports to Afghanistan is also unsatisfactory as only 150,000 tons of steel is exported to Afghanistan, which needs 4 million tons of the metal annually. That’s while Pakistan is the main exporter of steel to its northern neighbor.

Donyanoor stressed that the large volume of Iran’s steel imports during the past years have distanced Iranian steel producers from focusing on more effective export strategies. He said the steel sector should adopt new marketing strategies to help Iran move away from the oil-based economy.

The private sector has increased its share in steel production in the past decade, being considered a new-comer that needs time and also support from the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).

Iran is the first steel producer in the Middle East and the 15th largest steel producer in the world. During the past Iranian calendar year 1392 (ended March 20, 2014), over 15.6 million metric tons of steel was produced, indicating a 8.8% increase compared with the previous year.

Steel market experts forecast the total production of crude steel will exceed 17 million metric tons by the end of this year (March 20, 2015). Based on the country’s 2025 Vision Plan, between 52 and 55 million metric tons of steel should be produced per annum.