Iran: Semi-finished steel exports fall 22% y-o-y in first 9 months of current Persian year

• Power curbs cap steel output, export allocations
  
  
• Billet, bloom production declines by 10% y-o-y
  
  

Iran's semi-finished steel exports in the first nine months of the current Persian year (21 March 2024-20 December 2024) stood at 4.40 million tonnes (mnt), a decrease of 22% compared to the same period last year, according to data from Iranian Steel Producers Association (ISPA).

• Of the total semi-finished steel exports, billets and blooms accounted for 3.33 mnt, down by 16% y-o-y.
  
  
• Slab export volumes dropped significantly by 36% y-o-y to 1.07 mnt.
  
  

However, exports of long products were recorded at 2.50 mnt, up 16% y-o-y, while shipments of flats fell 8% y-o-y to 307,000 tonnes (t).

As per sources, weak global market dynamics and electricity restrictions on Iranian steelmakers impacted production levels, ultimately limiting billet export allocations.

Meanwhile, exports of direct reduced iron (DRI) in the period under review were recorded at 1.32 mnt, a rise of around 9% y-o-y.

Semi-finished steel production falls over 5% y-o-y

According to Petrometals, Iran's semi-finished steel output stood at 22.93 mnt in the first nine months of the current Persian year, a decrease of 6% from 24.51 mnt in the same period last year. Production volumes declined due to the Iranian government's power supply restrictions on steel mills, which were more stringent this year compared to the last.

Billets and blooms accounted for 13.88 mnt of total semis output, down by 9.5% compared to 15.34 mnt in the year-ago period.

Production of slabs inched down by 1.3% to 9.05 mnt as against 9.17 mnt in the corresponding period last year (CPLY).

Notably, DRI production stood at 29.33 mnt in the period under review, a rise of 4.3% compared to 28.13 mnt in the year-ago period. The increase can be attributed to the operation of new direct regeneration units during last winter and spring of this year.

Outlook

Billet exporters are currently offering less material due to sluggish market demand. However, this scenario is expected to change, as the Trade Development Organisation has announced that steel value chain exporters are no longer required to submit their export currency to the NIMA system. This decision will likely ease pressure on steelmakers and potentially boost export volumes.