Steel products output up 5% in 4 months yr/yr

August 18, 2020 - 11:39

TEHRAN- Production of steel products in Iran increased five percent during the first four months of the current Iranian calendar year (March 20-July 21) from the figure of the same period of time in the past year, IRIB reported.

As reported, 7.257 million tons of steel products have been produced during the four-month period of this year, while the figure was 6.93 million tons in the first four months of the previous year.

As previously reported, production of crude steel in the country has also increased in the first four months of this year.

Iranian steel producers produced 9.483 million tons of crude steel during the four-month period of this year, which was nine percent more than 8.683 million tons of the product produced in the same time span of the previous year.

According to a report released by the World Steel Association (WSA), Iran’s crude steel production increased by 30 percent in 2019 while the average global growth in this sector stood at 3.5 percent.

Based on the WSA’s report, Iran produced 31.9 million tons of the mentioned commodity during 2019, while the figure was 24 million tons in 2018.

According to the World Steel Association, Iran became the world’s tenth-largest steel producer in 2018.

Iran which stood at the 13th place in 2017 could lag behind three major steel producers in the world, namely Italy, Taiwan, and Ukraine to stand at the 10th place in 2018, despite the re-imposition of sanctions by the U.S.

Last month, a board member of the Iranian Steel Producers Association (ISPA) told IRNA that Iran has the capacity to export 15 million tons of steel per annum.

Saying that the country’s annual steel production has reached 30 million tons, Reza Shahrestani stated that of this figure 15 million tons can be exported and bring $7 billion of revenue for the country.

“Iran is now among the world’s top ten steel producers and in order to prove our capabilities in this due, we should have a strong presence in the international markets”, he stressed.

Iran’s export of steel products in the past Iranian calendar year (ended on March 19) rose 27 percent compared to its preceding year.

The country’s major steel producers managed to export about 7.33 million tons of the products in the previous year.

According to the data released by the Industry, Mining, and Trade Ministry, in the mentioned period over 20.226 million tons of steel ingots were produced by the country’s 10 major companies to register a five-percent rise year on year.

The mentioned companies also produced nearly 13.38 million tons of other steel products last year, six percent more than the preceding year.

In a bid to prevent the exports of unprocessed minerals, creating more value-added and meeting the requirements of domestic producers for the raw materials, Iran has levied a 25-percent duty on the exports of raw minerals (especially iron ore) since September 23, 2019.

Industry Ministry believes that the duty is going to encourage the production of more processed minerals such as pellets and concentrate instead of selling the raw minerals.

As Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) has announced, Iran’s annual steel ingot production is planned to increase 3.2 million tons in the current Iranian calendar year (ends on March 2021).

The country has defined 16 development projects in the steel sector to boost the output of steel products by 17.3 million tons in five years.

MA/MA

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