Iran: Semi-finished steel output edges up in eleven months of current Persian year

Iran's semi-finished steel production increased marginally in the eleven months of current Persian year (21 March 2023-20 February, 2024), according to data released by Petrometals.

Semi-finished steel output stood at 29.23 million tonnes (mnt) in the period under review, an increase of 5% as against 27.82 mnt in the same period last year. Billets and blooms accounted for 18.36 mnt of total semis output, up by 8% y-o-y, while production of slabs remained stable y-o-y at 10.87 mnt.

As per recent data, direct reduced iron (DRI) production stood at 31.42 mnt in the period under review, up by 9% compared to 28.71 mnt in the year-ago period.

Outlook

The persistent gas shortage issue continues to impact mills' production, adding complexities to the market dynamics. Current situation might affect the production volumes, BigMint noted. Meanwhile, Iranian government's recent announcement of export duty revision is expected to impact the export volumes leading to drop in production levels.