Mobarakeh retains domestic focus, warns on downstream exports

Posted on 07 March 2019

Source: Kallanish

Mobarakeh Steel (MSC) plans to produce 700,000 tonnes of merchant slab and 6.5 million tonnes of hot rolled, cold rolled and coated coil in the Iranian year through 19 March 2020. It will also focus on products for the sour gas environment, HRC coil under 2mm thick and automotive steel in the domestic market.

In the 11 months through 19 February 2019 MSC increased sheet sales to the domestic market by 8% on-year to 5.07mt. This includes 1.67mt of HRC under 3mm thick, up 10% on-year, and 1.08mt of CRC, up 3%.

MSC increased its number of customers by 10% on-year to 925. “Mobarakeh Steel has contributed to the continued supply of downstream factories by increasing the delivery of products to domestic customers,” Iran’s largest steelmaker says in a note seen by Kallanish. However, some of the products it supplied were re-sold in the export market without being further processed into downstream goods, MSC says. This practice causes damage to employment in Iran and must be stopped, it adds.

The firm anticipates iron ore pellet and HRC production of 7.5mt and 6.4mt respectively in the year through 20 March 2019.

While MSC has in recent years re-focused its sales activity to the domestic market, other Iranian steelmakers have put more emphasis on exports. This has, however, been made difficult by the re-imposition last August of economic sanctions on Iran. Iranian billet exports in the ten months through 20 January dropped -15% on-year to 2.51mt, while slab exports slumped -39% to 1.46mt (see separate article). 

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