Iran Steel

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Soon many of the sanctions will be lifted, and if not immediately with the USA, then at least with the rest of the world. This bodes well for the Iranian economy.

Now any SERIOUS ECONOMIC DEVELOPMENT of the $1.3 trillion Iranian PPP GDP must be based on a solid steel sector.

Chinese production of steel is 750 million tons.....biggest industrial power, and largest economy on earth $18 trillion.

Turkey's production of steel is 34 milion tons.......industrial base worth $500 billion, and a PPP GDP of $1.5 trillion.

Iran too must invest in this sector, seriously and heavily possibly with Chinese and German help.

This will of course apprehend envy, jealousy, paranoia and hate from the weak and corrupt in the world who are into corruption, wheeling dealing, financial speculation and casino voodoo economics. The Puppet Shah of Iran was removed for this reason, with the hope that the medieval mullahs would stall Iran's development. The mullahs closed all universities for several years, and also stopped development on ALL industrial and scientific projects of the Shah era.

Iran must ignore them, in the manner of China and move forward.

Of course it would have helped if Iran was not ruled by medieval mullahs, but no situation is perfect.

Steel is a strategic industry.

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Iran seeks to cast a future in steel 

By Presstv.com

 

Oil and gas and their derivatives constitute the lifeline of Iran’s economy but the key driver of the country’s growth is the steel industry which is growing by leaps and bounds.
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Iran plans to quadruple steel production to 55 million tons a year by 2025 in the face of sanctions in order to keep pace with its growing economy -- one of the Next Eleven candidates to become the world’s largest in the 21th century.
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The country is the largest steelmaker in the Middle East and North Africa.
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According to the Global Steel Association, cited by the Fars news agency, Iran produced 2.27 million tons of steel in the first two months of this year, up 15.6% on the same period the year before.
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Steel output by Iran totaled 16.33 million tons in 2014, securing the country’s place as the 15th largest producer in the world.  
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Steel is a strategic commodity for the country of 78 million, which is also the Middle East’s biggest carmaker. It is fundamental to the Iranian society with its massive oil and gas industry, transportation network, water supply, urban centers and mammoth construction.
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Iran’s steel imports, put around 10 million tons a year in some reports, roundly outweigh its exports.
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The steel sector in Iran is under growing threat of dumping by China, Russia and Turkey. The government has imposed tariffs of 10 to 20 percent and cancelled foreign currency offers at preferential rates on imports in order to protect the sector.
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But the industry still faces enormous challenges to stay competitive. One drawback is the high cost of iron ore production in Iran compared with the outside world.
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According to Iranian entrepreneurs, the sector is generating little value-added while imports are more viable.
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Head of the Iranian Steel Manufacturers Association Bahram Sobhani says one key problem lies where the size of production units is concerned.
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“It is unfathomable that instead of establishing units with a capacity above five million tons, we have built small- and medium-size plants,” he says.
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Iran’s biggest mill, also the Middle East’s largest, is Mobarakeh Steel Company which produces 7.2 million metric tons of steel per year.
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Most of Iran’s private steel plants, with a capacity under 100,000 tons, are scattered across the country.
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Sobhani also says Iran’s vision plan to quadruple steel output within a decade is overambitious.
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“Given that some eight years have elapsed since the plan was first devised, without any delightful development having occurred in the steel sector, it is impossible to achieve this target,” said the official, who is also the CEO of Mobarakeh Steel Company.
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But state officials are sanguine.  
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Mehdi Karbasian, deputy minister of industry, mine and trade, says dozens of foreign entities have indicated their interest to invest in Iran’s steel sector, including the Europeans and the Chinese.
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“We are in serious negotiations with the Kazakhs for cooperation in the steel, iron ore, zinc and aluminum sector which will have very good results if they become operational,” he said.
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“Meanwhile, the Indians have announced their readiness for investment and their operation is to start imminently,” Karbasian added.