Iranian steel exports continue to fall

Iranian steel exports fell 29% year-on-year in the five months to August 21 to 2.96 million tonnes, despite continued production growth, the Iranian Steel Producers Association (ISPA) said. Production of crude and finished steel increased by 10% and 3%, respectively, to 11.82 million tonnes and 8.8 million tonnes.

Five-month figures compared with -32% decline in exports and -9% decline in crude steel production after four months (see Kallanish at various locations).

Exports of steel semi-finished products in five months fell by -18% to 2.21 million tons, which was caused by a decline in slab exports by 56% to 452,000 tons, while exports of semi-finished products actually increased by 7% to 1.76 million tons. exceeding -2% decline after four months. ...

Exports of finished steel fell 49% to 744,000 tonnes. Overseas long product shipments fell 44% to 620,000 tonnes, driven by a 47% drop in rebar exports. Exports of flat products fell 66% to 124,000 tonnes.

Direct reduced iron exports fell 68% to 169,000 tonnes.

“Despite US sanctions as well as international restrictions stemming from the coronavirus crisis, domestic steel export regulations have recently tightened, and exports of steel semi-finished products and steel products are subject to authorization from the Office of the Undersecretary of Mines. and the mining industry of the Ministry of Industry, Mines and Trade, ”the ISPA said in a statement criticizing the authorities.

“The sharp drop in steel exports shows that previous warnings and assessments by the Iranian Producers Association are correct,” he continues. "Indeed, the available statistics show the effects of anti-export regulations, while the country is in dire need of foreign exchange earnings from non-oil exports."

DRI production rose 11% over five months to 12.88 million tonnes.