Iran: Semi-finished steel exports decrease 45% y-o-y in one month of current Persian year

Iran's semi-finished steel exports in the first month of current Persian year (21 March, 2024-20 April, 2024) stood at 343,000 tonnes (t), a decrease of 45% compared to the same period of last year, according to data from Iranian Steel Producers Association (ISPA).

• Exports of billets and blooms totalled 333,000 t, down 26% y-o-y.
  
  
• Slab export volumes were recorded at 10,000 t, a significant drop of 94% compared with the same period last year.
  
  
• Exports of long products were recorded at 215,000 t, up by 30% y-o-y, while flat product exports fell sharply by 55% y-o-y to 19,000 t.
  
  

The requirement of steelmakers to supply 100% of their export currency in the NIMA system can be considered one of the major reasons for the fall in volumes. Also, the imposition of export duties and the cancellation of export tax exemption also pulled down country's steel exports.

Outlook

Billet exporters have currently shifted their interest to DRI due to subdued demand in the billet export market. In the meantime, sources said that the Iranian government has imposed electricity restrictions due to high temperatures in the scorching summer to prioritise household consumption which is expected to weigh on production volumes.