4.7.15

Iran Steel output at 18 million tons 2015

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Iranian steelmakers are demanding an import tariff of up to 40% for certain steel products.
Iran’s steelmakers are calling on the government to raise import tariffs on certain steel products amid a “crisis” in the industry due to a number of factors, including dumping by China and other exporters. 
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The government has already increased import duties by 20% but steelmakers are calling for a raise of up to 40% for flat steel products in order to protect the industry.
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“The situation is critical and tariff protection is the only device which could positively affect the steel sector,” Secretary of the Iranian Steel Manufacturers Association Rasoul Khalifeh-Soltani said.
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The Ministry of Industry, Mine and Trade has been presented with a proposal to raise duties for hot-rolled, cold-rolled, coated and color coated steel sheets by 25%, 30%, 35% and 40% respectively, he said. 
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Khalifeh-Soltan said the prices of the finished imported steel are currently cheaper than the raw material used by Iranian producers.

“Certain countries have put a prize on steel exports, leading to dumping of their products in Iran. Our government must raise the duty barrier for imports from China similar to other countries such as the US.” 
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Iran is the Middle East’s biggest steel producer with 16.6 million tonnes a year which puts it at 14th on the world’s steel production table. Iran’s steel imports are put around 10 million tonnes a year in some reports which dwarf exports of around 2.5 million tonnes.
Technicians work at a control room in Isfahan's Mobarakeh Steel Company.
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Iran's steel production is expected to rise to 18 million tonnes this year, according to Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh. 
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The country plans to quadruple production to 55 million tonnes a year by 2025 to keep pace with demand in its industry and an economy being billed as one of the emerging Next Eleven. 
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Steel is a strategic commodity for the country of about 80 million. It is crucial to Iran’s massive oil and gas industry, transportation and water supply networks, urban centers and a mammoth construction sector as well as its employment.
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Iran’s biggest mill, also the Middle East’s largest, is Mobarakeh Steel Company which produces 7.2 million tonnes of steel per year.
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There are also several private steel plants, each under 100,000-tonne capacity, scattered around the country.
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The cost of iron ore production, however, is high in Iran compared with other countries, which makes the industry vulnerable to dumping.

The sector is further under pressure from the slump in global steel prices which are currently at their lowest levels in nearly six years.