Iran: New Production Capacities Coming Up Amidst US Sanctions

Iran, one of the largest crude steel producer in MENA region is currently facing economic sanctions from US. Sanctions have barred Iran to trade with other nations, owing to which the economy of Iran has affected badly. Despite US sanctions, against all the odds, Iran is coming up steel production capacity expansion.

Recently, Mr. Reza Rahmani, Minister of Minister of Industry, Mines and Trade, inaugurated Shahrood Steel Complex in Semnan region of Iran. According to Mr. Reza Rahmani, "the factory is scheduled to produce 150,000 MT of finished long steel annually and 150,000 MT of semi-finished steel. The melting plant is constructed with two melting and rolling sections."

He added, "The completion of the steel and basic steel chain is one of the most important projects of the government, which, thankfully, has now been balanced. By completing the steel chain, we will see a growth in exports and employment in the country."

He emphasized that with the support of domestic production units and domestic commodities, it can be countered by economic invasion. Talking about the impact of US Sanctions on domestic economy, Mr. Rahmani said, "If we want to solve the problems of unemployment, production and inflation in the country, the solution is to pay attention to domestic production and goods. The removal of barriers and facilitation of production should be planned."

The Minister of Industry, Mine and Trade said with reference to the capacities of the province, that the province of Semnan has the proper mineral potential, which must be well processed and exploited. The steel production capacity in the country is currently 34 MnT and the steel chain capacity in the country is 205 MnT.

Iran Crude Steel Production Increases by 19% Y-o-Y

Iran shas produced 20 MnT crude steel in the 10 months of CY'18 as per the data released by World Steel Organization. Iranian steelmakers produced 20.59 MnT of crude steel during the period. Production was up by 19% Y-o-Y against 17.30 MnT produced during the same period of CY'17.

Inputs taken from Minews