Iran: Steel production rises marginally y-o-y in first two months of current Persian year

Iran's finished steel production in the first two months of the current Persian year (21 March, 2024-20 May, 2024) stood at 4.04 million tonnes (mnt), a marginal increase of 3% compared to the same period of last year, according to recent data released by the Iranian Steel Producers Association (ISPA).

Out of the total volume, production of long products were recorded at 2.23 mnt, up by 2% y-o-y, while flat product output rose by 4% y-o-y to 1.81 mnt.

Meanwhile, semi-finished steel output stood at 6.42 mnt in the period under review, a slight increase of 2% as against 6.32 mnt in the same period of last year. Billets and blooms accounted for 3.91 mnt of total semis output, up by 2% y-o-y. Production of slabs also inched up by 2% to 2.51 mnt.

As per data, direct reduced iron (DRI) production stood at 7.66 mnt in the period under review, a rise of 14% compared to 6.72 mnt in the year-ago period.

Outlook

Billet exporters have currently shifted their interest to DRI due to subdued demand in the billet export market which is expected to impact production volumes.