Iranian Steel Makers Suffer by Government Policies - Bahman Tagilizadeh

Iran of the largest steel exporter of MENA region is currently facing economic sanctions from US, which badly affected nation's steel export. Major steel mills of Iran has exported around 3,879,200 MT steel in the first seven months of current Persian year (21 Mar-22 Oct'18). Experts believe along with US sanctions, the internal government policies has also discouraged exporters to export their cargoes.

According to Mr. Bahman Tagilizadeh, Deputy Director of Sales and Marketing of Khuzestan Steel "So far, exports has been proven to support steel production and prevent the reduction of production units. Infact, Iranian Steel Manufacturers Association has sought to obtain export incentives from government, but they failed and in return the exporters were imposed with export penalties some times."

He added, "The punishments will have a direct impact on the export market, as it will directly impact production and sales of the steel commodities."

Steel Export by Major Steel Mills of Iran

1 - Khouzestan Steel Company (KSC) was by far the largest exporter during the period, the company exported around 1,340,735 MT steel during the period. The company registered a downfall of around 14% Y-o-Y. Standalone during the seventh month, export was noted to be around 143,005 down by 16% Y-o-Y.

Major steel products exported by KSC during the seven months were Slab (591,348 MT), Bloom (413,356 MT) and Billet (346,780 MT).

2 - Mobarekeh Steel Company (MSC) was the second largest exporter of steel during the period, the company exported 717,780 MT in 7 months, registered a growth of 22% Y-o-Y. During the seventh month, company exported 54,130 MT.

Major steel products exported by MSC were HRC (423,148 MT), Slab (263,006 MT) and other finished flat steel (31,626 MT).

3 - Hormozgan Steel Company (HOSCO) was the third largest position of steel exporter in Iran exporting 456,792 MT Slabs during the first seven months, exports were down by 27% Y-o-Y. HOSCO exported 41,626 MT slab in the seventh month.

Inputs from Chilan Online