Last year, Iran was recognized as the 10th top steel producer in the world by Metal Bulletin. But this year, economic, environmental and health crises have pushed Iran far behind its performance last year. In this regard, the Association of Iranian Steel Producers has provided statistics on the production of Iranian steel in the first 4 months of this year, and their evaluation is very thought-provoking. According to this report, in July 1400, compared to June, the production of billets and blooms decreased by 42%, the production of rebar by 53%, the production of sponge iron by 42% and the production of hot rolled sheets by 22%. The six-month report on Iranian steel production seems to be more disappointing than this report. We will evaluate this report later. Please be with Artan Press.
*** Significant decrease in the report of steel production statistics in July
There is a sharp decrease in the statistics of July compared to June. It seems that the effects of power outages and shutdowns due to the water and electricity crisis in Iran are evident in the July reports. According to the published statistics, the production of intermediate steels, steel products and sponge iron in July of this year has decreased more sharply than in June because the production of this area is more dependent on electricity because electric arc furnaces in these products are the bottleneck of the production system. .
The decline in the country’s steel production in July was so severe that it caused the growth rate of intermediate steel production and steel products in the first four months of this year to be negative. The country’s middle steel production in the first four months of this year decreased by 4% compared to the same period last year reached 9,575,000 tons, while in the first three months of this year, the growth rate of the country’s middle steel production was 6%.
*** Reduction of quarterly production due to the electricity crisis
Production of long sections in Iran due to the use of cooling rolls that are highly dependent on electricity has experienced a significant decline in July this year. Compared to the same period last year, it has reached 5 million 781 thousand tons. Slab production in the first 4 months of this year has decreased by 3% to 3,794,000 tons. Bloom billet production in July of this year was 58% in June and slab production in July was 65% in June of this year. In the first four months of this year, total production of steel products decreased by 6% compared to the same period last year. The total production of steel products in the first 4 months of this year was 6 million 470 thousand tons.
In the first 4 months of 1400, 3 million 663 thousand tons of long products and 2 million 807 thousand tons of flat products were produced in the country. The growth of production of long products in the first 4 months of this year was negative 1% and the growth of production of flat products was negative 11%.
*** Control the amount of rebar production in adverse conditions
Due to the strong dependence of the civil engineering and construction sector on rebar, this field has tried to maintain its level of production. Commodity exchange reports in the first 4 months of this year showed that the rebar market has enjoyed relatively good luck in the worst conditions. In this regard, the production of rebar in the first 4 months of this year was a little more than 3 million tons, which shows a decrease of 1% compared to the same period last year.
Beam production in the first 4 months of this year has decreased by 9% to 374 thousand tons. In July of this year, the amount of beam production was 50% in June and the amount of rebar production was 47% in June. Continuation of this trend made steel production reports at the end of the year very unprofitable. Iran will definitely lose its tenth place among the world’s top steel producers this year. The energy crisis has occurred in all countries. But mismanagement in Iran has made this trend unique.
*** Steel production statistics in the steel sheet sector of the first quarter
The amount of hot plate production in the first 4 months of this year was 2 million 759 thousand tons, which shows a decrease of 10% compared to the same period last year. Cold sheet production fell 9 percent in the first four months of this year. The production of coated sheets in the first 4 months of this year was 5% more than the same period last year. Restrictions on electricity consumption by steel companies have caused the production of hot rolled sheets to be 78% in June, cold sheets to be 80% in June, and coated sheets to be 71% in June.
*** Immunity of metal base products from reduced steel production statistics
Basic steel products and those that depended on the mine production line did not feel much change. Mines are usually powered by powerful generators. Perhaps this is one of the reasons why the downstream nut of Iranian steel was less damaged. According to the statistics of the Steel Association, the producers of sponge iron in the first 4 months of this year have produced about 10.6 million tons of this product, which does not show any change compared to the same period in 1999. Although the main energy consumed in direct reduction units is gas, but the restrictions imposed on steel chain companies have led to the production of sponge iron in July, 58% of the production volume of this product in June this year.
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