Iran: Semi-finished steel exports drop over 20% y-o-y in H1 of current Persian year

• Power restrictions weigh on export allocations
  
  
• NIMA system major factor behind reduced volumes
  
  

Iran's semi-finished steel exports in the first half of the current Persian year (21 March 2024-20 September 2024) stood at 2.77 million tonnes (mnt), a decrease of 25% compared to the same period last year, according to data from Iranian Steel Producers Association (ISPA).

Out of the total semi-finished steel exports, volumes of billet and bloom stood at 2.18 mnt, a 16% drop y-o-y while slab exports fell significantly by 46% y-o-y to 598,000 tonnes (t).

However, exports of long products were recorded at 1.73 mnt, up by 32% y-o-y, while flat product exports fell by 26% y-o-y to 170,000 t.

The requirement for steelmakers to supply 100% of their export currency to the NIMA system is a major factor contributing to reduced volumes. Furthermore, electricity restrictions on these producers have impacted production levels, ultimately affecting billet export allocations.

Meanwhile, DRI export volumes in the period under review were recorded at 596,000 t, a drop of around 34% y-o-y.

Outlook

Billet exporters are currently offering less material due to weak market demand, with recent export tenders receiving lower-than-expected bids. However, 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 is anticipated to ease pressure on steelmakers and potentially boost export volumes.