The Iranian Steel Association has unveiled a report on the production, consumption and export of intermediate steel. A noteworthy point in this report is that the apparent consumption of intermediate steel has decreased by 1%. However, the export pattern of this field shows acceptable growth in this field. Moving to export markets is a good deal, but it should not be at the cost of suppressing domestic consumption. In the current situation, all countries have strengthened their technical infrastructure, and this is the reason for the growing demand. We should not destroy the domestic market under the pretext of profitability of export markets. As we have seen zero demand in the steel market in recent days. In the following, we will evaluate this issue. Please be with Artan Press.
*** Growth of Iranian intermediate steel exports according to the report of the Iranian Steel Association
The significant export growth of the intermediate steel sector, along with the good profits it has for exporters, also carries a message to the world industry. All countries have strengthened their port and industrial infrastructure since the Corona pandemic. The reason for the growth of demand in the global market is not outside this framework. In addition to exporting intermediate products, Iran should be able to develop its port, marine and traditional infrastructure to keep up with the world.
According to the latest statistical report of the Iranian Steel Producers Association, the total export of Iranian steel (intermediate steel and steel products) in the first three months of this year was 2 million 491 thousand tons, which compared to the same period last year, a significant growth of 74% If the domestic steel market was in equilibrium and sales in this area were stable, we should consider the current situation as a great success. But in the current situation, there are serious concerns about the domestic market trend.
*** The effect of correct and rational policy on Iranian intermediate steel exports
Steel export regulations have recently been eased and from the beginning of June, steel exports do not require an export check from the Ministry of Silence. However, restrictions on the production of steel companies due to electricity shortages have become a serious obstacle to the continuation of the jump in Iran’s steel exports in the coming months.
In the first three months of this year, the country’s average steel exports were 1 million 618 thousand tons, which shows a growth of 55% compared to the same period last year. Of the middle steel exports, the share of billet and bloom exports in the first three months of 1400 was 1 million 55 thousand tons, and the share of slab exports was 563 thousand tons. In the first three months of this year, slab exports grew by a staggering 176 percent, while billet and bloom exports rose 26 percent. The total export of steel products in the first three months of 1400 was 873 thousand tons, which compared to the same period last year, shows a significant growth of 125 percent.
*** Performance record of companies active in Iran’s intermediate steel export sector
Among steel products, the share of exports of long steel sections is 784 thousand tons and the export of these sections, in the first three months of this year, has increased by 129 percent. Exports of rebar, which has the largest share of total exports of steel products, in the first three months of this year compared to the same period last year, increased by 142 percent and reached 684 thousand tons.
Companies such as Isfahan Steel and Mobarakeh Steel, Khuzestan Steel, Auxin Steel, Hormozgan Steel, Iran Alloy Steel, Azerbaijan Steel, Khorasan Steel, Kaveh South Steel, Saba Steel, Bonab Steel, Jahan Steel Sirjan, Chadormelo Iron Ore and Kavir Steel Steel exports were in the country. A total of 116,000 tons of steel exports have been made by these companies on a monthly average. The data show that more than 2 million tons of steel were exported in the first quarter of the year. Exports of steel flat sections also increased by 98% in the first three months of this year, reaching 89,000 tons. Sponge iron exports in the first three months of this year, with a growth of 1505 percent to 321 thousand tons.
*** Removal of export license for steel ingots
In May of this year, the Mineral Industries Office of the Ministry of Silence sent a letter to the Export and Import Regulation Office of the Ministry announcing that the export of steel ingots (billets, blooms and slabs) has been released and the export of listed companies for three months from June 1 does not require a license from the Mineral Industries Office of the Ministry of Silence and Export. According to the communiqué, steel ingot production units can also plan for the export of ingots that have not been traded on the commodity exchange. The cancellation of the export tick of the Ministry of Silence for the export of steel products has also been implemented since May 15 this year.
*** The effect of removing the export tick in encouraging steel exports
Merchants and traders can also export steel products by buying from the export ring of the Commodity Exchange. Exports of steel products have been banned by commercial companies since late 1997. Despite the growth of other steel inputs, the billet sector has recorded a 70% drop in production and exports, which seems an unfamiliar figure in the recent production growth. But Bonab Steel has left a very acceptable performance in the rebar sector. The growth of 400% of the company’s production along with the growth of 1100% of alloy steel shows that long sections have recorded an acceptable situation in the export route.
Eliminating the export tick and facilitating the export of steel is a positive step in order to increase steel production. Unfortunately, the electricity shortage has become a serious obstacle to increasing the country’s steel production and exports since June, and in July this problem was exacerbated by the complete cessation of steel chain companies. The sustainable growth of the country’s steel exports and production requires the sustainable access of steel companies to basic services is like electricity, water and gas.
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