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    ۱۲۸% growth in steel exports in spring of 1400

    شناسه : 51221 27 تیر 1400 - 10:30
    The 128 percent growth of Iran's steel exports is an issue that has attracted the attention of many market participants in the last month. Khuzestan Steel is unique in the production and export of steel and owes this to the change in engineering methods of production processes and pure thinking. Power outages, however, in the current situation is the biggest risk and obstacle in the path of Iranian steel production.
    ۱۲۸% growth in steel exports in spring of 1400
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    Steel production in Iran with all the coronary and infrastructure constraints in the past year has been a significant figure. Statistics show a 128 percent growth in Iran’s steel exports. We owe this figure to the significant production of steel in the hard days of Corona. The growth of steel production this year, however, has been accompanied by challenges. Of course, despite the crude sales that are taking place, it remains to be seen whether this trend is in favor of Iranian steel or not? Stay tuned to Artan Press.

    *** Steel production growth in the first quarter of the year

    In the spring of 1400, the country’s steel companies focused all their efforts on maximum sales to the global steel market due to rising global prices and cravings. The steelmakers were able to export more than 2,078,036 tons of steel, which showed a 128 percent increase in their performance compared to the same statistics last year. Companies such as Isfahan Steel and Mobarakeh Steel, Khuzestan Steel, Auxin Steel, Steel Hormozgan, Iran Alloy Steel, Azerbaijan Steel, Khorasan Steel, Kaveh South Steel, Saba Steel, Bonab Steel, Jahan Steel Sirjan, Chadormelo Iron Ore and Kavir Steel were the leading steel exports in the country.

    The growth of steel production by these companies in the first quarter of this year was 100%, which is almost unprecedented in the history of Iranian steel production. In June of this year, these companies exported 916,236 tons of steel, which indicates a growth of 104% compared to June 1999.

    *** The role of steel giants in the growth of steel production

    When it comes to steel exports, the mentality arises that Iranian steel giants such as Mobarakeh Steel and Zobahan have had the best performance. But evaluating the data for the first quarter of this year shows other results. Among the leading companies in the field of steel production, Khuzestan Steel had the best performance among companies in the first quarter of this year with exports of 523,321 tons of bloom, billets and slabs and recorded a growth of 92%. After that, Isfahan Steel with 315,844 tons export and growth of 75% and Mobarakeh Steel with export of 267,861 tons and growth of 325% were in the second and third places.

    *** Khuzestan steel learned in the path of steel growth

    In terms of steel production performance, with the average volume production approach, Khuzestan Steel Company has recorded a better performance in the last month of spring compared to the top steel companies in Iran. Earlier in the analysis, we discussed the significant change in approach in Khuzestan steel due to steel production technologies. The company has moved towards lean production with minimal waste by optimizing production processes. The company has also made progress in terms of water consumption. Therefore, the lessons learned of this company should be provided to other producers. Khuzestan Steel with 182,134 tons, Mobarakeh Steel with 161,829 tons and Kaveh South Steel with 123,600 tons have been the best companies in steel production in the last quarter.

    *** Reduction of production and export of intermediate steel

    In some José, assessments show that Iran’s steel exports have declined. Middle steel is one of these areas. Due to power outages, reduced raw material extraction, rising wage costs at the beginning of this year and slowing down the production of raw materials in Iran, we saw a decrease in production and exports of some steel fields. Bloom, billets, slabs, wide sheets, alloy-engineering sections, rebars, sponge iron and hot briquettes are the major steel products for export. The total export of Iranian steel (intermediate steel and steel products) last year was 9 million tons, which compared to 1998, shows a decrease of 13.1 percent.

    This decrease in exports in terms of weight was one million and 362 thousand tons. Last year, the country’s average steel exports were 6 million and 162 thousand tons, which shows a decrease of 11 percent compared to 1998. Of the middle steel exports last year, the share of billet and bloom exports was 4,564,000 tons and the share of slab exports was 1,598,000 tons. Slab exports fell 23 percent in 1999, while billet and bloom exports fell 6 percent.

    *** Investigating the causes of reduced steel production in some areas

    Iran’s export plans have posed many challenges in recent months. Lack of a clear plan to supply electricity to steel and industrial companies, fluctuations in the dollar exchange rate, rising prices of raw materials, the possibility of rising prices of energy carriers are issues that could jeopardize Iran’s export prospects. The development plans of leading steel countries, especially India, the lifting of corona restrictions and the return of other companies to the production circuit, is a threat to Iran’s steel export markets, and we must now plan to export 15 million tons on the horizon of 1404. Iran must replace oil with steel. The oil market will eventually be welcomed for the next two years.

    *** power outage ; The biggest risk in the growth of steel production

    Currently, the most important risk in the Iranian steel market is power outages and pressures on producers in this area. If this issue continues, the export promises of producers will be questioned and heavy losses must be expected. Unfortunately, in a situation where the global market is thirsty for steel demand, this opportunity has been missed. The effects of declining production of steel products in the market are very rapid. The power outage threat is not limited to the export market. The price of steel products in the domestic market has increased by more than 10%, and if we continue in the same way, there will be irreparable effects on the market of these products. The power outages of steel companies are not only the fault of these companies, but also the major losses in the month.

    The future will be seen in the absence of raw materials for downstream industries, and the main victims of this downturn and the reduction in production will be the people. The power consumption of the steel chain is higher only in the smelting and steelmaking ring than in other industries. Therefore, you should think of measures for companies in proportion to consumption so that the process of steel production in the country does not become a problem.

    *** Deficit compensation time is short

    The Steel Association has proposed a great opportunity to compensate for the shortcomings of the various links in the steel chain (except smelting and steelmaking) similar to other industries to be able to operate and produce, and to smelting and steelmaking units at least at times other than peak hours such as night, Allow activity. The Iranian Steel Producers Association has emphasized that the recent restrictions imposed on the country’s steel chain factories, which allow a maximum of 10 percent of their consumption demand, have effectively shut down the chain’s production units, which will certainly have adverse consequences for regulating the domestic steel market. It will also disrupt the country’s steel export and exchange rate.

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