Iran Leads Middle East Steel Production, Expands Exports

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Iran is leading the expansion of steel production and exports in the Middle East.

The country's crude steel output reached 15.64 million tonnes in the first nine months of the current Iranian calendar year (beginning March 2014), which is a 9% increase from the same period a year earlier. Production of 17 million tonnes is targeted for the full year ending March 2015.

According to the World Steel Association (WSA), Iran is the largest producer of steel in the Middle East. Annual steel output is projected to increase to 55 million tonnes by 2025, based on the 20-year strategy outlook.

The 55 million-tonne target is seen as optimistic by some industry observers. Currently, there are seven major steel projects in the pipeline that have been delayed by financing issues. The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) is working with the China Metallurgical Group to resolve the issues, which involve the Chinese central bank. Also dependent on the production pipeline moving forward is the target to export 10 million tonnes of steel by 2025.

The country exported 1.33 million tonnes in the first nine months of the current calendar year, starting on March 21, 2014. This figure topped the 1.25 million tonnes exported in the same period the previous year.

Bahram Sobhani, Iran's steel producer association chairman, said that crude steel was exported to more than 50 countries in the period. He added that coastal areas of the Persian Gulf and the Gulf of Oman would transform into centers for steel production in the near future.

National Iranian Steel Company Managing Director Mohammad Khandadash echoed Sobhani's comments, saying that exports to other countries are high on the agenda of Iran's steel industry. If officials don't take action soon, he said, rivals will take the opportunities away from Iranian companies.

In addition to Turkey, three other regional countries, Saudi Arabia, United Arab Emirates (UAE) and Qatar, through implementing development plans, have emerged as new rivals for the Iranian steel industry. Khandadash called for new plans to facilitate development and attract foreign investments to boost the industry.

For related information, see August 2, 2014, article - Outlook Improves for Middle East-North African Growth Recovery, Hot Spots Seen in Manufacturing.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.