Iran to convert into biggest exporter from largest importer of steel
Global steelmakers have always played in profits by importing steel to Iran for a long time. But now the country seems to be planning to produce its own steel, which may turn into one of the largest exporters of the product in the world.
Steel producers expect an end to sanctions that could help keep the import of steel to Iran maintained. On the other hand, the nation plans to triple its steel production to around 55 million tonne by 2025. Some of the global firms are looking forward to help the country with technological tools for developing steel mills that will aid in processing raw iron ore.
Companies like Posco of South Korea and Nippon Steel & Sumitomo Metal Corp of Japan are ready to sell steel to Iran at the time when the international producers are facing diminishing demands from China, one of the top buyers.
After the sanctions were imposed on the nuclear program of Tehran around a decade ago, Iran has been found entering steel production and export field during the phase of deteriorated imports. The data provided by the World Steel Association, or Worldsteel, depicted that steel output in the Islamic nation has grown to 60 percent from 2007, leading to 16.3 million tonne in 2014.
“Years ago, Iran was importing 10-12 million tonne. We will never see those figures again, I can say with certainty,” a board member of the Iranian Steel Producers Association Bahador Ahramian said via Business Standards . He added removing sanctions will lead to enhancement of access power to global trade finance by the country, thereby fostering steel exports.
Iran’s imports dropped from 12.2 million tonne in 2007 to 1.5 million tonne in 2014. In 2007, the country was regarded as the biggest overseas buyer across the Middle East, as suggested by the Worldsteel and the International Steel Statistics Bureau.
Deputy Minister for industry, mines and trade Mehdi Karbasian said that Iran expects companies like top shipper Mobarakeh Steel to double its export production to 4 million tonne from 2015 to March 2016, with a plan of increasing it to 10 million tonnes by 2025.
Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.
