Economy, Business And Markets

Steel Sector Faces Tough Competition

Steel Sector Faces Tough CompetitionSteel Sector Faces Tough Competition

If the essential needs of the steel industry, including foreign investment, development of the infrastructures, and most importantly organizing the projects are not met, the country’s steelmakers will never be able to compete with regional players, the head of the National Iranian Steel Company (NISCO) told IRNA on Sunday.

Turkey, Saudi Arabia, Qatar, the UAE, and Oman are all enjoying huge financial resources and have the opportunity to cooperate with the leading companies across the world, said Mohammad Khandadashpour, adding that those countries can easily overtake Iran in seizing the regional markets.

NISCO managing director said a strategic “balance plan” is being jointly prepared by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and the ministry of industry, mine, and trade.

The plan is mainly aimed at achieving a proper balance in production, consumption, import, and export of iron ore, iron ore concentrate, iron ore pellet, and direct reduced iron (DRI).

Absence of a clear national strategy brought disastrous consequences to the steel industry during the eight years of Mahmoud Ahmadinejad’s presidency. The new administration, which has appointed more experienced managers for key positions in the industry, has vowed to overcome the existing challenges and provide a stable and proper balance to secure the future of the steel industry.

Based on the 2025 Vision Plan, the country should be able to produce at least 52 million metric tons of crude steels every year. This as the current production is said to be around 18 million metric tons per annum.