Iran: Steel production edges up y-o-y in just-concluded Persian year

Iran's semi-finished steel production in the last Persian year (21 March, 2023-20 March, 2024), according to data released by Petrometals.

Semi-finished steel output stood at 31.51 million tonnes (mnt) in the period under review, an increase of 4% as against 30.21 mnt in the same period last year. Billets and blooms accounted for 19.87 mnt of total semis output, up by 8% y-o-y, while production of slabs inched down by 1% to 11.64 mnt.

As per recent data, direct reduced iron (DRI) production stood at 33.59 mnt in the period under review, up by 7% compared to 31.42 mnt in the year-ago period.

Natural gas consumption and electricity restrictions during winter due to higher fuel consumption and supply constraints in northern Iran were pressing concerns for the country's steel mills. However, when power-related issues were resolved, Iranian mills sought to increase their production levels.

Outlook

Billet exporters have shifted their interest to DRI due to subdued demand in the billet market. Also, the Iranian government's export duty revision is expected to continue to impact exports from the country resulting in low production volumes.