Iran's steel exports decline

Processing Materials 23 August 2022 14:02
Tehran, Iran Trend News Agency
Iran's steel exports decline

Iran's export of steel products has sharply declined in the first four months of the current Iranian year (started March 21,2022), a board member of the Iran Steel Producers Association Reza Shahrestani told Trend.

Export of long steel products was 985,000 tons in the last Iranian year (started March 21,2021) but the volume declined to 763,000 tons in the current year indicating a 23 percent decline, he said.

Referring to the export of other products during this period, he noted that the export of flat steel products has reduced from 1.1 million tons to 900,000 tons showing a 23 percent fall.

Crude steel export has reduced by 13 percent from 2.5 million tons to 2.2 million tons and export of sponge iron reduced by 60 percent from 415,000 tons to 166,000 tons, and export of concentrate had a 48 percent decline from 291,000 tons to 150,000 tons, he pointed out.

Meanwhile export of pellets in the first four months of the current Iranian year had increased 135 percent this year from 440,000 tons to 1.36 million tons export.

The official expressed concerns over the decline in the export of finished or semi-finished steel by 900,000 tons while the raw materials continue to be exported.

He underlined that heavy tariffs imposed by the government on steel export have decreased the volume of sales and reduced the country's revenue by $15 billion.

Following power outages in summer and low steel production the government imposed heavy tariffs on the export of steel products, he said adding that Russia has managed to capture Iran's destination markets by offering lower rates.

According to Shahrestani, the fall in steel export is the rising US dollar exchange rate from 250,000 rials to 320,000 rials was another cause of the decline in steel export, however, the possible agreement for revival of the 2015 nuclear deal has currently reduced the USD rate.