Iran: Steel exports drop over 25% in first 3 months of current Persian year

Iran's semi-finished steel exports in the first three months of the current Persian year (21 March, 2024-20 June, 2024) stood at 1.57 million tonnes (mnt), a decrease of 26% compared to the same period of last year, according to data from Petrometals.

However, exports of long products were recorded at 925,000 t, up by 31% y-o-y, while flat product exports fell significantly by 41% y-o-y to 76,000 t.

Meanwhile, DRI export volumes in the period under review was recorded at 341,000 t, a fall of around 15%, y-o-y.

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 are currently not in a mood to allocate material 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.