Iranian Chrysler Steel (KSC) said that, up to March 20 on this year in Iran, exports of billet and slab were about 1.9 million tons, exports accounted for 50% of production, achieved a highest record, surpassed the Mubarak Steel and became the largest steel export manufacturer. The past few years, Mubarak Steel Company (MSC) has been the largest export manufacturer. Now it is reduced to the second largest export manufacturers. Last year, KSC produced 3.6 million tons of billet. According to the company's plan, the next two years the annual output of billet will increase to 500 million tons, and will reach to 13.6 million tons in 2025. So it can be expected that exports of this company will continue to increase.
The data of Iranian Iron and Steel Association showed that from March 2016 to February 2017, Iran produced a total of 16.83 million tons of semi-finished steel, year-on-year growth of 10%, semi-finished steel exported 3.22 million tons, inceased 108% over the same period of last year, of which billet exported 189 million tons, year-on-year growth of 29%, slab exported 1.33 million tons, year-on-year growth of 14 times. Obviously, after oil, natural gas and petrochemical products, steel is another big export products of Iran.
The reasons behind Iran's steel exports increased are:
1. Energy prices of Iran are low, steel production costs have a competitive advantage, currently, export price of steel is average higher 15% than the local market, billet export price is about 390 USD/ton, while China's steel exports offer about 440 USD/ton.
2.The Iranian construction industry depressed, steel consumption capacity declined. From March 2016 to February 2017, Iran consumed 13.79 million tons of semi-finished products and 17.55 million tons of finished goods, were down 1% and 2%.
By the impact of anti-dumping and high prices, the export competitiveness of China's steel declined, exports reduced, especially for the United States and Europe, which gave Iran a very good export opportunities. In Asia, China's major export markets are also being seized by Iran, such as Thailand, the United Arab Emirates, China Taiwan and Oman, Indonesia, they are Iran's major steel export markets.
The Iranian government invest heavily to expand steel production capacity, in accordance with the Iranian steel industry strategic development plan, to 2025, iron and steel production capacity target is 55 million tons, steel apparent consumption will increase from 17 million tons to 34 million tons, which means that there will be 21 million Tons of output for export.
