Iran: Semi-finished steel output rises 3% y-o-y in first 4 months of current Persian year

Iran's semi-finished steel production increased by 3% in the current Persian year (21 March-20 July, 2023), according to data released by Petrometals.

• Semi-finished steel output stood at 10.87 million tonnes (mnt) in the period under review, up 3% y-o-y. Billets and blooms accounted for 6.72 mnt of total semis output, up 7% y-o-y, while production of slabs inched down by 3% y-o-y to 4.15 mnt.
  
  
• As per data from the Iranian Steel Producers' Association (ISPA), direct reduced iron (DRI) production stood at 12.95 mnt in the period under review, an increase of 7% 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 of last year.

However, the key concern at present is news of gas and electricity prices in the region getting almost doubled which will lead to an unprecedented surge in costs for steel mills.

Outlook

Hike in production costs and increase in inventories due to export duty imposition may result in a decrease in production volumes, SteelMint notes.