With 16.11 million tons of steel produced in 2015, Iran is the Middle East’s largest and the world’s 14th largest steelmaker, according to statistics from World Steel Dynamics.
Nonetheless, according to the head of Iranian Mines and Mining Industries Development and Renovation Organization, China’s relentless steel dumping strategies, weak domestic demand and the ongoing recession in the construction sector have darkened the outlook for the steel industry.
“Domestic steelmakers are cutting down on production due to the prevailing recession in the market, preventing us from meeting the 18-million-ton production target by the end of the [current Iranian] year,” Karbasian expressed.
The new Iranian year starts on March 20, 2016.
“Iranian steel mills have the capacity to easily reach the target,” Karbasian said, adding that if the issue of pellet shortage was handled through increased imports, domestic steel output could even reach 21 million tons.
However, “there is no demand for all that steel”, he added.
As part of broader objectives of the 20-Year National Vision Plan (2005-25), domestic steel output is projected to reach 55 million tons per year.
Source: Donya-e-Eqtesad
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