Iran: Semi-finished steel exports drop over 20% y-o-y in first 7 months of current Persian year

• Power curbs limit steel output, impact export allocations
  
  
• Steel players exempted from NIMA, export boost expected
  
  

Iran's semi-finished steel exports in the first seven months of the current Persian year (21 March 2024-20 October 2024) stood at 3.25 million tonnes (mnt), a decrease of 23% compared to the same period last year, according to data from the Iranian Steel Producers Association (ISPA).

Of the total semi-finished steel shipments, billet and bloom volumes stood at 2.58 mnt, a 15% drop y-o-y, while slab exports plunged by 44% y-o-y to 671,000 tonnes (t).

However, exports of long products were recorded at 2.04 mnt, up 29% y-o-y, while flat product shipments fell 23% y-o-y to 208,000 t.

As per sources, electricity restrictions on Iranian steelmakers have impacted production levels, ultimately limiting billet export allocations.

Meanwhile, DRI export volumes in the period under review were recorded at 834,000 t, a drop of around 17% y-o-y.

Outlook

Billet exporters are currently offering less material due to sluggish market demand. However, this scenario is set to change, as the Trade Development Organisation has recently announced that steel value chain exporters are no longer required to submit their export currency to the NIMA system. This decision will likely ease pressure on steelmakers and potentially boost export volumes.