Economy, Business And Markets

Coated Steel Strip Production Jumps 42% in 10 Months

Coated Steel Strip Production Jumps 42% in 10 MonthsCoated Steel Strip Production Jumps 42% in 10 Months

Iran’s coated steel strip output reached a record 1.26 million tons in the first 10 months of the Iranian year to Jan. 20, up 42% from the same period of a year earlier, a recent report published by Iranian Steel Producers Association said.

A large portion of these coated strips end up in domestic galvinizing mills, given the strong demand for these strips by the country’s automotive industry, S&P Global Platts reported.

Among others, mills such as the Chaharmahal Bakhtiari Automotive Sheet Company’s 400,000 tons/year hot-dip galvanizing line, and Taraz Steel, with Iran’s first Galvalume line of 65,000 tons/year, consume these coated steel strips.

Both mills are affiliated to Mobarakeh Steel Company, the largest steel producer in the country.

Iran’s output of hot-rolled coil had also increased during the 10-month period, ISPA reported.

Despite declining HRC exports to Europe, HRC production rose 10% year-on-year to a record 6.41 million tons.

The production of finished steel products had also increased to 16.39 million tons, up 9% year-on-year. This includes 9.61 million tons of flat products, which rose 16% from the previous year, and 6.08 million tons of long products, which registered a 6% decline YOY.

In its report, ISPA also said semi-finished products increased 19% YOY to 18.36 million tons: 9.9 million tons of billet and 8.46 million tons of slabs.

According to the Iranian Mines and Mining Industries Development and Renovation Organization, Iran is looking to increase its steel manufacturing capacity to 55 million tons/year by 2025, with plans to export some 20 million tons of it.

However, there are doubts whether this goal can be achieved given the shortage of iron ore and domestic demand.

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