Iran: Steel production up 6% y-o-y in Mar-May'22

Iran's steel production in the first two months of the current Persian year (March-May, 2022), registered a marginal 6% increase y-o-y, according to the latest data released by the Iranian Steel Producers Association (ISPA).

• The country produced 5.88 million tonnes (mnt) of semi-finished steel in the month under review, up 5% y-o-y. Billets and blooms accounted for 3.41 mnt of the total semi-finished output, up 2%, y-o-y, while slab production increased by 9% y-o-y to reach 2.47 mnt.
  
  
• The total production of finished steel stood at 3.79 mnt in the period under review, higher by 6% y-o-y.
  
  
• Production of long and flat steel stood at 2.28 mnt (up 4%) and 1.77 mnt (up 8%), respectively in March-May, 2022.
  
  
• As per ISPA data, direct reduced iron (DRI) production stood at 6.54 mnt in the first two months of the Iranian year, an increase of 11% compared to the same period last year.
  
  

Outlook

Amid power supply curbs, Iran's steel production is likely to remain limited in the near term, affecting billet export allocations. However, the ease in restrictions may become a deciding factor for the export market. The Ministry of Energy has given approval for easing power restrictions in the country and steel mills will be supplied electricity from 11 pm to 8 am without any hurdles.