Iranian steel companies to facilitate increase of foreign currency in economic turnover

Business Materials 4 April 2019 16:43 (UTC +04:00)

Baku, Azerbaijan, April 4

By Elnur Baghishov – Trend:

Considering that there will be no need for the additional purchase of raw materials and equipment in the near future, sales of foreign currency earned by Iranian steel companies through steel exports to the NIMA system are set to increase this Iranian year (started March 21, 2019), CEO of Fulad Jonub (Southern Steel) and member of the Management Committee of Iran Steel Producers Association Ahmad Donya Nour told ILNA, Trend reports.

According to Donya Nour, the steel industry is in good shape, despite the international financial constraints faced by the Iranian economy.

Donya Nour expressed hope that Iran's steel and related industries will strongly develop this year.

"Iran's steel production increased by more than 12 percent last year (started March 21, 2018) and exports went up by more than 15 percent," he said.

Donya Nour noted that, despite the financial problems currently at hand, not only was an increase observed in production and export rates, but new customers have been found for Iranian products as well.

"It is forecasted that Iran's steel exports will reach 25 percent this year, as new customers have been found in Europe," he said.

Donya Nour also said that contracts with European companies have been finalized and orders have already been made.

Donya Nour went on to say that most of the foreign currency has been used for the purchase of raw materials and equipment, and enough materials have been purchased for at least the next 2 years – only a very small amount of foreign currency has been brought back to the country.

According to him, a facility for the production 5 million tons of pellets and concentrates will be commissioned in the city of Sangan, located in Iran’s northeastern Razavi Khorasan Province, and the production of the Chadormalu complex in Iran’s southeastern Yazd Province will also increase.