The Iranian Steel Producers Association published a report on the statistics of Iranian steel production in the first two months of the year. Evaluation of the association’s published data shows that despite experiencing the fourth corona wave in the first two months of the year, manufacturers have been able to record a 16% growth in production. This growth in production was most likely due to the attractiveness of export markets. We will evaluate this report in the following. Please be with Artan Press.
*** Steel production statistics from the perspective of the Iranian Steel Association
According to the latest data announced by the Iranian Steel Producers Association, in the first two months of the year we have witnessed more than 5.6 million tons, which shows a significant growth of 16% compared to the same period last year. Iran’s steel production performance in the first two months of this year is very good and if the power and gas outages do not cause much disruption in the country’s steel production, the country’s steel production this year will easily reach at least 33.6 million tons. If we talk about optimal production, it is because almost all over the world, the growth trend has not yet reached double digits. International manufacturers are more cautious about steel production. Of course, this issue has good aspects and bad aspects.
*** Evaluation of the report of the Steel Production Association regarding long sections
We will move the evaluation of the report of the Association of Steel Producers to the section of long sections. According to the statistics provided by this institution, compared to the same period last year, the growth of rebar production was 18% and the growth of billet and bloom production was 17%. Statistics published by the Iranian Steel Producers Association for the first two months of this year show that compared to the same period last year, the growth of rebar production was 18% and the growth of billet and bloom production was 17%. Due to the growth of prices of these two products in the global market, it is likely that these products have been exported to international markets.
*** Steel production statistics in the middle steel sector
If we examine the pulse of the market, we will find that the market has been suffering from weak demand for real consumption in the final product for a long time. Steel production statistics also confirm this. But for some time now, this fragment of capital demand has also faded, and almost all elements of the market at the level of the final product, while in a state of “patience and watching”; Shopping for them is no longer even attractive and justifiable investment.
At the higher levels of the country’s steel supply chain, however, intermediate steel producers for whatever reason may have been affected by activity in export markets or forced to keep their production wheels moving, or for any other reason. Demand for ingots, or even a higher layer of sponge iron, remains high. Therefore, we predict that this sector, like rebar, will have acceptable growth in New Year production.
*** ۱۶% growth in billet and bloom production in the first two months of 1400
By providing the above explanations, we will report on steel production statistics in accordance with the most official steel reporting body of Iran. According to the statistics of the Steel Association, the country’s middle steel production in the first two months of 1400, with a growth of 16 percent over the same period last year has reached 5 million 605 thousand tons, of which the share of Billet and Bloom, 3 million 341 One thousand tons and the share of slabs was 2 million 264 thousand tons.
Billet and Bloom production in the first two months of this year compared to the same period last year, grew by 17 percent and slab production, grew by 13 percent. This growth in production was not due to domestic demand for steel. Unfortunately, the current domestic steel market suffers from a lack of real demand. Prices have risen so much that many builders and investors are unable to afford the cost of their own housing infrastructure and construction sites. Continuation of this trend, despite the growth of intermediate steel products, will pose a bad alarm for the domestic market.
*** Steel production statistics in general in all products
We should not forget that Iran is the 10th largest steel producer in the world in 2020. This trend has continued at a slow pace this year. Therefore, it can be claimed that the steel production train is still moving on the production track. Therefore, the overall outcome of the steel market has moved upwards. In the first two months of this year, total production of steel products increased by 10% compared to the same period last year. The total production of steel products in the first two months of this year was 3 million 576 thousand tons. In the first two months of 1400, 1 million 940 thousand tons of long products and 1 million 636 thousand tons of flat products were produced in the country. Production growth of long products was 16% and production of flat products was 2%.
*** Take a look at sheet production in the first two months of the year
Almost all of the steel sheets produced in Dahl are home appliances and cars. Due to the conditions of sanctions and on the one hand the reduction of sheet metal consumption in the Iranian market and on the other hand the existence of competitors in the international market, this field has had less growth. Steel production statistics in the sheet sector show almost the most passive numbers compared to last year. The amount of hot plate production in the first two months of this year was 1 million 605 thousand tons, which shows a growth of 2% compared to the same period last year. Cold sheet production in the first two months of this year has not changed much.
The production of coated sheets, which had sharply decreased at the beginning of last year due to the special conditions of the corona, in the first two months of this year increased by 26% compared to the same period last year and reached 265 thousand tons.
*** Steel production statistics from the perspective of sponge iron
Area Another that is inactive in terms of production is sponge iron. Due to the special technology of counting this material and on the other hand the special uses of this product, we have witnessed subtle changes in the production process of this material in the last two months. According to the statistics of the Steel Association, the statistics of steel production in the sponge iron sector in the first two months of this year show that producers have succeeded in producing about 5.6 million tons of this product.
This amount of production has increased by 1% compared to the same period in 1999. It seems that due to the growth rate of steelmaking in the country, new investments in the production of sponge iron are still needed. This field can be a substitute for iron ore, to save Iranian steel from the crisis of depletion of sponge iron reserves.
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