Khouzestan Steel accepts increased costs to continue exports

Posted on 11 December 2018
 

Source: Kallanish

Khouzestan Steel (KSC) is prepared to accept an increase in export costs and change in contracts in order to maintain shipments abroad in the face of economic sanctions on Iran, according to KSC managing director Mohammad Keshani. The firm still expects to reach semi-finished steel exports of 2 million tonnes in the Iranian year through 20 March 2019.

“We may have to take on the risk of exporting and the commodity that was previously sold on an fob basis will now be sold to the buyer on a cfr basis,” Keshani tells the Iranian Steel Producers Association online portal Chilan. “We anticipate we will not lose volume, but there will be restrictions.” Payment and delivery terms may change but shipments to the same 17 countries will continue, he adds.

In the seven months through 22 October KSC exported 1.34mt of steel. The firm has also received new orders in December. The crude steel production target for the current Iranian year is 3.8mt.

KSC recently won an Imidro tender for iron ore exploration rights in the Borazjan area. The firm is also in talks to purchase several mines. Considering the time and cost involved in setting up a mine, KSC’s short-term goal is to buy interests in existing miners and concentrate producers, Keshani says in the interview monitored by Kallanish.

The firm is looking to conclude the purchase of plate producer Oxin Steel, which it will supply with 1m t/year of slab feedstock.

    



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