Iran: Finished steel imports rise over 10% y-o-y in first two months of current Persian year

Iran's finished steel imports in the first two months (21 March, 2024-20 May, 2024) of the current Persian year stood at 1.89 million tonnes (mnt), a rise of 13% compared to the same period of last year, according to recent data from the Iranian Steel Producers Association (ISPA).

In addition to Iranian DRI and billets, the flat steel segment has also experienced the consequences of gas consumption limitations, resulting in a lower supply of these products and higher interest in imports.

Imports of long products were recorded at 0.15 mnt, up by 15% y-o-y, while flat products' import volumes, too, increased by 13% y-o-y to 1.75 mnt.

Imports of semi-finished steel products totalled 0.06 mnt, a sharp rise of around 100% y-o-y.

Outlook

Iran's finished steel import volumes are expected to remain supportive, considering the gas limitations faced by steel mills in the domestic market. Meanwhile, the Iranian government has recently announced restrictions on electricity usage as well, due to power shortage amid peak summer in the region which will impact mills' production volumes and possibly drive them to fulfill their requirements via imports.