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Iranian local flat steel producers helpless against imports-The 18th Guangzhou Die-casting, Foundry & Industry Furnace Exhibition
5/17/2017 Die-casting expo-foundry expo |
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The Iranian steel market’s demand for flat products is being met through imports, as local producers operate below production capacity. Stating this Mr Seyyed Reza Shahrestani a member of Iranian Steel Producers Association added that close to 2.5 million tonnes of coated, cold- and hot-rolled coils were imported in the last Iranian year (ended March 20, 2017).
He said that “The steel production chain is currently unbalanced, as slab production capacity was boosted by 2 million tons last year, exceeding local demand, while flat-starved downstream users have to turn to imports. We are unable to produce only about 700,000 tons of the imported flats, which are made up of specialized products. We have the required production technology and capacity for meeting the rest of local demand.”
Mr Shahrestani believes that the capital spent on flat imports must be allocated to reviving underperforming mills grappling with financial problems due to the banking system’s limited lending ability.
According to ISPA, imports of semis and steel products stood at 187,000 tons and 2.91 million tons last year, indicating a 44% rise and a 31% drop respectively.
Less than 3-mm HRC was the main imported product with 1.28 million tons, down 36% year-on-year. It was followed by cold-rolled coil with 617,000 tons, more than 3-mm HRC with 366,000 tons and coated coils with 350,000 tons.
Another reason why flat imports continue unabated is the downtrend in the global flat steel market, according to Metal Bulletin.
Chinese suppliers, under pressure from unfavorable conditions in their local market, have significantly reduced their export prices in recent weeks. The lower prices have attracted attention in the Iranian market, making imports profitable again despite relatively high Iranian import duties.
HRC and CRC are subject to 20% import duty in Iran. Duty for hot dipped galvanized coil is at 26%.
These duties were expected to be halved as of the beginning of the current Iranian year (started March 21). However, no decision on this has been announced yet by the Iranian government.
-The
18th Guangzhou Die-casting, Foundry & Industry Furnace Exhibition
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