Steel products output drops 10%

October 1, 2021 - 14:35

TEHRAN- Production of steel products in Iran fell 10.6 percent in the first five months of the current Iranian calendar year (March 21-August 22), as compared to the same period of time in the past year, the data released by Industry, Mining and Trade Ministry indicate.

The ministry’s data put the country’s five-month steel products output at 9.856 million tons.

Although as announced by the Iranian Steel Producers Association (ISPA), the country’s export of steel products increased 88 percent during the first five months of the present year, as compared to the same period of time in the past year.

Based on the data released by the ISPA, 1.399 million tons of steel products was exported in the five-month period of this year, while the figure was 774,000 tons in the same time span of the previous year, Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) reported.

Iran’s import of the steel products has risen one percent to 338,000 tons in the first five months of the present year from 336,000 tons of the past year’s same period.

In early May, Industry, Mining and Trade Ministry issued a three-month waiver for some approved steel production units to be able to export steel products especially long sections.

The ministry had restricted the exports of steel products and obliged all steel producers to offer their products at Iran Mercantile Exchange (IME).

Iran’s export of steel during the previous Iranian calendar year 1399 (ended on March 20) declined 13.1 percent compared to the figure for the preceding year, data released by the Iranian Steel Producers Association showed.

Based on the mentioned data, over 2.839 million tons of steel products were exported in the mentioned year, registering an 18-percent decline year on year.

As ISPA data indicated, the exports of steel products, intermediate steel, and sponge iron all declined last year, and despite significant output growth and the demand decline in the domestic construction sector, the exports of the mentioned products did not increase due to the pandemic.

Iran is currently the tenth largest steelmaker in the world and is estimated to climb to seventh place by the Iranian calendar year 1404 (March 2025).

According to the latest data released by the World Steel Association (WSA), production of crude steel in Iran reached 17.8 million tons during January-July, 2021 to register a 9.9 percent growth year on year.

Iran’s monthly crude steel output stood at 2.6 million tons in July 2021, rising nine percent compared to the figure for July 2020.

The Iranian Steel industry has been constantly developing over the past years against all the pressures and obstacles created by outside forces like the U.S. sanctions and the coronavirus outbreak that has severely affected the performance of the world’s top producers.

MA/MA

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