Iran: Finished steel exports jump 14%, y-o-y, in Mar'21-Feb'22

Iran's finished steel exports in the first 11 months of the current Persian Year (Mar'21-Feb'22) stood at 3 million tonnes (mnt), registering a significant 14% rise compared to the same period last year, according to data from the Iranian Steel Producers Association (ISPA).

• Exports of long and flat products were recorded at 2.48 mnt and 0.52 mnt respectively during the period. Exports of long steel increased by 24% while flat steel exports fell by 17% y-o-y.
  
  
• Exports of billets and blooms in the first 11 months totalled 4.63 mnt, up by 10% y-o-y.
  
  
• Slab export volumes were recorded at 2.14 mnt, higher by 47% compared to the same period last year.
  
  

The country's finished steel exports fell sharply due to the Covid-19 outbreak, sluggish international trade along with restrictions on electricity consumption and widespread blackouts which prevailed in the second quarter of this year.

Meanwhile, the recent restrictions on natural gas consumption during winter due to higher fuel consumption and supply constraints in northern Iran was also a concern.

However, the restrictions have been eased. As power curbs-related issues have been resolved, Iran may stimulate steelmakers to increase production and push up billet export allocations.

Outlook

SteelMint notes that the uncertainty in the global markets and change in trade dynamics due to the ongoing crisis between Russia and Ukraine may open up further opportunities for Iran to increase exports. It can tap into the markets where Russian supplies have been disrupted.