Iran: Steel exports decrease in first 2 months of current Persian year

Iran's semi-finished steel exports in the first two months of the current Persian year (21 March, 2024-20 May, 2024) stood at 815,000 tonnes (t), a decrease of 42% compared to the same period of last year, according to data from the Iranian Steel Producers Association (ISPA).

• Exports of billets and blooms totalled 719,000 t, down 20% y-o-y.
  
  
• Slab export volumes were recorded at 96,000 t, a significant drop of 81% compared with the same period last year.
  
  

Exports of long products were recorded at 599,000 t, up by 46% y-o-y, while flat product exports fell sharply by 68% y-o-y to 50,000 t.

The requirement of steelmakers to supply 100% of their export currency in the NIMA system can be considered one of the major reasons for the fall in volumes. Also, the imposition of export duties and the cancellation of export tax exemption also pulled down the country's steel exports.

Meanwhile, the Iraqi government has announced imposition of 20% import duty on rebar from all sources with an aim to support domestic producers. The duty will be implemented from 3 October.

Outlook

Billet exporters have currently shifted their interest to DRI due to subdued demand in the billet export market. In the meantime, sources said that the Iranian government has imposed electricity restrictions due to high temperatures in the scorching summer to prioritise household consumption which is expected to weigh on production volumes.

Also, BigMint expects, Iraq's import duty imposition will weigh on Iran's export volumes as out of the total rebar exports from Iran, 64% of the finished long steels went to Iraq.