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China dominates Iran steel market, as domestic producers making loss

Business Materials 21 September 2015 09:46 (UTC +04:00)
China dominates Iran steel market, as many Iranian producers are making loss due to falling global prices.
China dominates Iran steel market, as domestic producers making loss

Baku, Azerbaijan, Sept. 20

By Fatih Karimov - Trend:

China dominates Iran steel market, as many Iranian producers are making loss due to falling global prices.

Morteza Aqajani, the managing director of Mines and Metals Engineering Company, said that those producers, which are older, supply products at lower prices thanks to their more comprehensive lines of production, Iran's ISNA news agency reported on September 20.

"Younger producers have to provide a part of their needed raw material in the form of pellets. This issue raises their end prices," he said.

Setting higher import tariffs will be more effective than reducing pellet price in curbing steel imports, he emphasized.

Pellets are used in a steel mill in order to extract iron from iron ore, which is normally converted into steel.

Iran's annual crude steel exports is planned to reach four million tons in the current Iranian fiscal year, which began on March 21, according to Iranian Deputy Industry, Mining, and Trade Minister Mehdi Karbasian.

Iran's crude steel exports amounted to 2.5 million tons in the past calendar year.

Iran's crude steel output is projected to increase to 18 million tons in the current Iranian fiscal year, according to Iranian Ministry of Industries, Mines and Trade. The figure is to reach 55 million tons by 2025.

Steel production rose 6 percent and 6.6 percent in Iran in 2014 and 2013, respectively.

Iran was the biggest producer of crude steel in the Middle East in 2013. The country ranked 14th in the world in 2014, said the World Steel Association (WSA).

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