Iran’s coated steel strip output jumps 42% on year: ISPA

Source: PLATTS

Iran’s coated steel strip output reached a record 1.26 million mt in the first 10 months of the Iranian year to January 20, up 42% from the same period a year earlier, according to the Iranian Steel Producers Association report released Thursday.

A large portion of these coated strips end up in domestic galvinizing mills, given the strong demand for these strips by the country’s automotive industry. Among others, mills such as the Chaharmahal Bakhtiari Automotive Sheet Company’s 400,000 mt/year hot-dip galvanizing line, and Taraz Steel, with Iran’s first Galvalume line of 65,000 mt/year, consume these coated steel strips. Both mills are affiliated to Mobarakeh Steel Company, the largest steel producer in the country.

Meanwhile, Iran’s output of hot-rolled coil had also increased during the first 10 months, according to the ISPA report.

Despite declining HRC exports to Europe, HRC production rose 10% year on year to a record 6.41 million mt.

Production of finished steel products had also increased to 16.39 million mt, up 9% year on year. This includes 9.61 million mt of flat products, which rose 16% from the previous year, and 6.08 million mt of long products, which registered a 6% decline year on year.

In its report, the ISPA also said that semi-finished products increased 19% year on year to 18.36 million mt — 9.9 million mt of billet and 8.46 million mt of slabs.

According to the Iranian Mines and Mining Industries Development and Renovation Organization, or IMIDRO, Iran is looking to increase its steel manufacturing capacity to 55 million mt/year by 2025, with plans to export some 20 million mt of it.

However, there are doubts whether this goal can be achieved given the shortage of iron ore and domestic demand.

Source: PLATTS