Iran’s monthly steel output up 3.8% y/y: WSA

TEHRAN, Jun. 26 (MNA) – Iranian steel mills produced a total of 2.235 million tons of crude steel in May, rising from the 2.153 million tons in May 2018, the latest report released by the World Steel Association shows.

The figure shows an increase of 3.8% compared with the corresponding period of 2018, despite the US sanctions on the country’s metals, the Brussels-based international trade body for the iron and steel industry added.

In an attempt to [as the US president Trump put it] “choke off the country’s largest non-petroleum related sources of export revenue", Washington imposed new sanctions on Iran's metals and minerals sectors in early May.

While at the first glance [considering Trump’s comments], this might seem to be a heavy hit to Iran’s economy in the near future but a close look into the country’s exports data could reveal Trump’s great miscalculations. In fact, this could even be considered a “blessing in disguise” for the country’s minerals and metal industry.

In a press conference on June 8, Iranian deputy industry, mining, and trade minister said the ministry has taken necessary measures to maintain the country’s metal exports despite US sanctions.

“We have established a special working group in the ministry which is closely assessing the situation and making necessary arrangements to mitigate the impact of US sanctions,” Jafar Sarqini added.

The official noted that it is expected for the exports from the country’s mining sector to, at least, reach the last year’s $8.5 billion by the end of the current Iranian calendar year (March 2020).

Also, during a meeting with the members of Iran Steel Association on Sunday, Iranian Industry, Mining and Trade Minister Reza Rahmani said the country has achieved proper self-reliance in the steel industry.

The steel industry is one of the industries in which some good investment has been made and today it has become a production advantage, the minister further underscored.

Meanwhile, Jafar Sargini said on Saturday that Iran’s annual steel production is planned to reach 45 million tons by the Iranian calendar year 1400 (March 2021-March 2022).

Referring to the sanctions, the official said, “All those who have imposed sanctions against Iran aim to destroy the country’s production capabilities; therefore, the Ministry of Industry, Mining and Trade prefer that the steel producers focus first on production and in this due development projects with the physical progress of over 70 percent will also help achieve this target.”

On June 15, the official had announced that the country’s annual crude steel production is planned to reach 30 million tons in the current Iranian calendar year.

He put Iran’s crude steel production at 25 million tons in the past year.

Sarqini had also announced that Iran will inaugurate steel projects with the capacity of at least 10 million tons during the current Iranian calendar year.

According to World Steel Association, Iran became the world’s tenth largest steel producer in 2018.

Iran which stood at the 13th place in 2017 could lag behind three major steel producers in the world, namely Italy, Taiwan, and Ukraine to stand at the 10th place in 2018, despite the re-imposition of sanctions by the US.

Iran’s crude steel output stood at 24.52 million tons in 2018, up 17.7% year-on-year.

MNA/TSNM2040028/TT

News Code 146914

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