EghtesadOnline: Khouzestan Steel Company exported 1.25 million tons of slab, bloom and billet during the first 10 months of the current fiscal year (March 21, 2020-January 19, 2021) to top the list of Iranian steel exporters.
According to data released by Iranian Mines and Mining Industries Development and Renovation Organization, the volume of exports registered a 19% fall compared with the mill’s output during the same period of last year.
KSC’s exports during the 10th month of the year (Dec. 21, 2020-Jan. 19) stood at 155,563 tons, down 11% year-on-year. It exported a record high of 2.76 million tons in the last fiscal year (March 2019-20), marking a growth of 34% YOY.
Mobarakeh Steel Company, the largest steel producer in Iran and the Middle East, exported 125,573 tons during the month under review and 931,543 tons during the aforementioned 10 months, up 24% and down 22% YOY respectively.
Winner of National Medal of Honor in Exports
Esfahan Steel Company’s exports totaled 791,086 tons during the 10 months under review to register an 18% year-on-year decline. The company’s exports during the 10th month went down by 28% to 63,004 tons.
ESCO was awarded the National Medal of Honor in a ceremony held to mark the 24th annual National Export Day in January.
CEO of the company, Mansour Yazdizadeh, was awarded by First Vice President Es’haq Jahangiri at the event.
Esfahan Steel Company is the first and largest constructional steel and rail producer in Iran and the biggest producer of long products in the Middle East.
According to Yazdizadeh, ESCO has constantly registered growth in exports, expanded its export destinations and boosted shipments to regional markets as well as those in Southeast Asia and Africa.
He added that the company prides itself in repatriating 100% of its export earnings.
“ESCO has two goals, namely development of Iran’s railroad by producing rail, in addition to expansion of its export markets,” he was quoted as saying by ILNA.
Esfahan Steel Company supplied the Construction and Development of Transportation Infrastructure Company with the first batch of domestically produced 60E1 (UIC60) rails in September 2019.
Notably, ESCO is providing rails for the massive Chabahar Zahedan rail project.
Iran recently signed a contract with Afghan Railway Company to export rails to the neighboring country.
According to the Iranian Steel Producers Association, the first contract for export of rails to Afghanistan was signed with a value of $4.33 million.
Chabahar-Zahedan rail project requires at least 50,000 tons of rail tracks, 5,000 of which are going to be supplied by ESCO.
With an investment of 12,000 billion rials ($46 million), the 628-kilometer railroad project connecting the southeastern port city of Chabahar to the eastern city of Zahedan near the border with Afghanistan and Pakistan has witnessed a 48% physical progress so far, the deputy head of the Construction and Development of Transportation Infrastructures Company, Abbas Khatibi, said in November.
Noting that 70% of the excavation works of the project has been completed, the official said, “This large-scale project has been split up into northern and southern parts forming eight sections. The southern part is 312 kilometers long and the northern part 316 kilometers,” the Ministry of Roads and Urban Development's news portal reported.
His remarks came after Minister of Roads and Urban Development Mohammad Eslami inaugurated the track-laying operation from Chabahar Port.
“The track-laying from Zahedan started three months ago and thus far 32 kilometers of the railroad have been completed. A total of €300 million have been allocated to this project from the resources of the National Development Fund of Iran, of which we have received €100 million to date.”
The project manager said 92,000 tons of rails are needed to complete the 700-kilometer track. According to Mohammad Reza Azarian, the UIC60 rails manufactured by Esfahan Steel Company will be used in this project.
“As per the contract with ESCO, the Isfahan-based company will supply 5,000 tons of rails in the first stage, of which 1,000 tons have been delivered. Track-laying of one kilometer of railroad is planned to be completed in one day,” he was quoted as saying by Fars News Agency.
South Kaveh Steel Company took the next spot with 613,400 tons of billet exports in 10 months to post an 11% YOY fall. The mill recorded a 3% decline in monthly exports, with 78,000 tons.
Chadormalu Iron Ore Processing Company was next with 453,033 tons of billet exports since March 21, nearly 30,800 tons of which were shipped during the 10th month of the current fiscal year.
IMIDRO figures show a 76% increase in the company's exports in the first 10 months of the year and a 56% drop from the 10th month’s perspective.
Hormozgan Steel Company came next, exporting 437,026 tons during the 10 months, down 38% YOY. HSC shipped 92,920 tons during the month ending Jan. 19, marking a 16% decline YOY.
Kavir Steel Company followed with more than 350,000 tons of exports during the 10-month period under the review, up 7% YOY. The mill also posted a 48% growth in monthly exports, 48% to 52,820 tons.
Bonab Steel Company registered the highest jump among major steel exporters in the 10 months under review. It exported 69,886 tons, 127% higher than the same period of last year.
Saba Steel Company’s exports grew by 98% YOY to 281,869.
Khorasan Steel Company registered the highest growth in exports during the 10th month of the year with 241% rise in billet exports.
The IMIDRO report shows major steel mills in Iran posted a decline in collective volume of exports.
They experienced a 10% decline in the volume of finished and semi-finished steel products exports during the 10th month of the Iranian fiscal year. Their total exports amounted to 656,817 tons during the month under review.
The 10-month volume of exports by steel heavyweights also went down by 13% to 5.42 million tons.
The data used in this report are based on preliminary statistics provided by IMIDRO on Iran's large-scale producers and lacks details on most private producers' shipments.
A more detailed report will be published by Iran Steel Producers Association later.
A surge in domestic demand as well as price controlling policies employed by the Ministry of Industries, Mining and Trade are among key reasons behind the fall in the exports of major steel producers.