Posted on 22 Dec 2020
Iranian apparent steel consumption slowed slightly in the month through 20 November, but the export decline also eased slightly, Kallanish notes.
Official Iranian steel exports in the eight months through 20 November were still down -19% on-year to 5.47 million tonnes, the Iranian Steel Producers’ Association (ISPA) says on its online Chilan portal. However, this compares to a -23.5% drop after seven months.
Eight-month semi-finished product exports fell -13% to 3.79mt, versus -16% after seven months. Billet exports made up considerable ground on previous months, falling by only -3% to 2.87mt, while slab exports slumped -36% to 914,000t.
Finished steel exports slumped -30% to 1.68mt, but this was compared to a -37% drop after seven months.
Eight-month long steel exports fell -33% to 1.23mt, driven by a -37% drop in rebar shipments. Flats exports fell -23% to 451,000t, recovering from a -37% drop after seven months.
Iranian direct reduced iron exports fell -43% to 403,000t.
Despite increasing Iranian steel production and a simultaneous economic recession, steel exports have not increased in any product segment, ISPA re-emphasises.
In terms of apparent consumption, finished steel use grew 18% in the eight months to 13.57mt, with longs and flats use increasing 26% and 13% respectively. This compares to a 20% growth in finished steel use after seven months.
Hot rolled coil use totalled 5.89mt, cold rolled coil use was 1.96mt and coated sheet use totalled 1.15mt. Rebar consumption surged 29% to 5.08mt and sections use was up 20% to 750,000t.
Semis consumption was meanwhile up 21% to 16.81mt. DRI use rose 14% to 20.3mt.
Demand for long products on the Iranian Mercantile Exchange fell sharply in November, which led to a decrease in their apparent consumption, ISPA says. The “…staggering” growth in apparent consumption of longs, especially rebar, in recent months has occurred despite Iran’s stagnant construction sector and low government spending, ISPA observes. “Now, with the fever of speculative demand, the growth rate of apparent consumption of these sections has also been declining,” it adds.
Source:Kallanish
