Iran: Semi-finished steel output inches up y-o-y in 3 months of the current Persian year

Iran's semi-finished steel production increased by 4% in the current Persian year (21 March-20 June, 2023), according to data released by the Petrometals.

• Semi-finished steel output stood at 8.88 million tonnes (mnt) in the period under review, up 4% y-o-y. Billets and blooms accounted for 5.36 mnt of the total semis output, up 6% y-o-y, while slabs production remained stable y-o-y at 3.52 mnt.
  
  
• As per Iranian Steel Producers Association (ISPA) data, direct reduced iron (DRI) production stood at 9.96 mnt in the period under review, an increase of 4% y-o-y.
  
  

The country's steel production volumes continued to remain strong as electricity consumption and gas restrictions were better managed compared to the corresponding month last year.

However, the recent news of gas and electricity prices in the region getting doubled leading to high production costs has become a matter of concern for the steel mills.

Outlook

Hike in production costs, subdued finished steel demand and upcoming Muharram holidays might result in decrease in production volumes, SteelMint noted.