EghtesadOnline: Saba Steel Complex, a subsidiary of Iran’s largest flat steel producer Mobarakeh Steel Company, has managed to finish the second phase of its expansion project, allowing it to double steelmaking and rolling capacities of the mill.
The development will help cover the needs of the local market taking into account the lack of hot rolled coil in Iran.
Saba Steel Complex recently completed a 850,000-ton electric arc furnace and compact strip production plant that allowed the company to reach a total of 1.6 million tons of slabs and HRC capacity per year, as Metal Expert learnt from the company representative.
According to the source, the project stage was commissioned at the beginning of April and the new equipment is expected to reach full utilization within a year.
According to Financial Tribune, MSC counts on domestic demand to provide some strong support to HRC sales from Saba Steel Complex.
Potential buyers in the Middle East and North Africa region are also interested in HRC from Iran, which might stimulate the company’s exports in the mid-term.
In the new Iranian year (started March 21), the share of sales to the domestic market is expected to be around 75%.
“We will continue to focus on the local market to meet the demand of domestic customers,” a company source told Metal Expert.
According to market participants, there is a shortage of 2 mm HRC in Iran, thus MSC’s expansion will help cover domestic needs to a big extent.