Exports of Iranian semi-finished products are down 21% year-on-year to April 20, the first of a new Iranian year, to 329,000 tonnes, according to the Steel Producers Association of Iran (ISPA).
The re-imposition of US economic sanctions on Iran since August last year has severely undermined the country's ability to sell steel overseas, making it difficult for international buyers to pay for the Iranian product. After the first four months of the previous Iranian year, or the four months to July 22, 2018, the growth of Iranian billet exports peaked at 35%. Meanwhile, growth in finished steel exports peaked at 138% after six months to 22 September.
Slab became the leader in the monthly decline with a drop of -41% to 108,000 tons, while supplies of billets abroad fell by -9% to 284,000 tons.
Exports of finished goods fell 8% in the first month to 109,000 tons, reversing the growth trend seen in the previous 12 months, when exports rose 84%. This happened despite a 26% increase in rebar exports to 68,000 tonnes. Exports of hot rolled steel coils declined 43% to 29,000 tonnes, while exports of coated steel coils fell to 2,000 tonnes.
In the meantime, direct reduction iron exports fell 10% to 44,000 tonnes.
However, consumption of finished goods rose 15% in the first month to 1.59 million tonnes, after declining all goods except rebar in the previous 12 months. HRC use rose 17% to 771,000 tonnes and rebar consumption rose 22% to 524,000 tonnes. The use of cold rolled steel coils increased by 7% to 210,000 tonnes and the use of coated coils increased 32% to 140,000 tonnes. Section consumption increased by 38% to 105,000 tons.
Production of semi-finished products and finished steel for the month increased by 3% and 16%, respectively, to 2.18 million and 1.67 million tons. DRI production rose 14% to 2.54 million tonnes.
Imports of finished steel to Iran fell 55% to 29,000 tons.
