Iran: Semi-finished steel exports drop 8% y-o-y in Mar-Nov'22

Iran's semi-finished steel exports in the first eight months of the current Persian year (March-November, 2022) stood at 4.43 million tonnes (mnt), registering an 8% fall compared to the same period last year, according to data from the Petrometals.

• Exports of finished steel totalled 2.19 mnt, stable y-o-y.
  
  
• Exports of long products were recorded at 1.93 mnt, a y-o-y increase of 8%, while flat products exports fell sharply by 35% y-o-y to 0.26 mnt.
  
  

Why have exports fallen?

• Imposition of export tariffs: The imposition of export duties at the beginning of this year was one of the major factors that disturbed the Iranian exports market. As previously reported by SteelMint, Iran's Director General of the Mineral Industries announced 11% and 17% export tariffs on steel billets and slabs, respectively, which was later reduced to 2% and 5% in mid-May, 2022.
  
  
• Weak global demand: The geo-political conflict between Russia-Ukraine and sluggish demand in different countries of the world affected the Iranian export market. Also zero-Covid policy in China further led to a decline in trade from Iran.
  
  

Outlook

Iran's semi-finished steel export market is expected to remain supported in the near term because of the sharp rise in global scrap prices. However, reduction in gas supply amid cold weather in the region may result in a marginal drop in production levels, affecting exports.