Posted on 29 May 2019
Iranian semi-finished product exports declined -21% on-year in the month through 20 April, the first of the new Iranian year, to 329,000 tonnes, according to Iranian Steel Producers’ Association (ISPA) data monitored by Kallanish. This follows their -29% on-year drop in the year through 20 March 2019.
Slab lead the one-month decline with a -41% drop to 108,000t, while billet shipments abroad fell -9% to 284,000t.
Finished product exports, meanwhile, fell -8% in the first month to 109,000t, reversing the strong growth trend seen in the preceding 12 months when exports surged 84%. This came despite a 26% surge in rebar exports to 68,000t. Hot rolled coil exports plunged -43% to 29,000t, while coated coil exports fell to only 2,000t.
Direct reduced iron exports, meanwhile, fell -10% to 44,000t.
Apparent consumption of finished products, however, rose 15% in the first month to 1.59mt, following declines for all products except rebar in the preceding 12 months. HRC use rose 17% to 771,000t and rebar consumption was up 22% to 524,000t. Cold rolled coil use grew 7% to 210,000t and coated coil use rose 32% to 140,000t. Sections consumption was up 38% to 105,000t.
One-month output of semis and finished steel grew 3% and 16% respectively to 2.18mt and 1.67mt. DRI output grew 14% to 2.54mt.
Iranian imports of finished steel, meanwhile, plunged -55% to 29,000t.
The re-imposition since last August of US economic sanctions on Iran has severely hampered the country’s ability to sell steel abroad by making it more difficult for international buyers to pay for Iranian product. After the first four months of the previous Iranian year, or four months through 22 July 2018, Iranian billet export growth peaked at 35%. Finished steel export growth meanwhile peaked at 138% after the six months through 22 September.
