Iranian Chrysler Steel (KSC) said that in the Iranian year ended March 20 this year, billet and slab exports of about 1.9 million tons, exports accounted for 50% of production, a historical record, beyond the Mubarak Steel has become the largest steel export manufacturer. Over the past few years, Mubarak Steel Company (MSC) has been the largest export manufacturer, is now reduced to the second largest export manufacturers.
KSC steel is mainly exported to 13 countries and regions in the world, of which about 50% to the Middle East and North Africa, 40% sent to the Far East, about 10% of exports to the United States. Asia is also an important market, such as Thailand, China Taiwan, South Korea, Malaysia and Indonesia, last year about 800,000 tons of billet and slabs sent to these countries, in addition, also aimed at the United States, Brazil and Canada North America and South America market.
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 to 500 million tons, to 20.6 years to 13.6 million tons, which is expected to continue to increase the company's exports.
Iranian Iron and Steel Association data show that in March 2016 to February 2017, Iran produced a total of 16.83 million tons of semi-finished steel, an increase of 10%, semi-finished steel exports 3.22 million tons, up 108% over the same period last year, of which billet exports 189 million tons, an increase of 29%, slab exports 1.33 million tons, an increase of 14 times. Obviously, steel is Iran's oil, natural gas and petrochemical products after another big export products.
Iran's steel exports increased behind the reasons are:
First, Iran's energy prices are low, steel production costs have a competitive advantage, the current export price of steel than the local market average of 15%, billet export price of about 390 US dollars / ton, while China's steel exports offer about 440 US dollars / ton.
Second, the Iranian construction industry downturn, steel consumption capacity decline, March 2016 to February 2017, Iran consumed 13.79 million tons of semi-finished products and 17.55 million tons of finished products, were down 1% and 2%.
Third, by the impact of anti-dumping and high prices, China's steel export competitiveness decline, exports reduced, especially for the United States and Europe, which gives Iran a very good export opportunities. Asia, China's major export markets are also being seized by Iran, such as Thailand, the United Arab Emirates, China Taiwan and Oman, Indonesia and other Iran's major steel export market.
The Iranian government to 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 of 55 million tons, steel apparent consumption from 17 million tons to 34 million tons, which means that there will be 21 million Tons of output for export.
