According to comments from Hamidreza Azimian, CEO of Mobarakeh Steel Co in Iran, steelmakers are seeking to hedge against the problems of importing goods and technology into Iran, which could further affect production and export potential, by establishing desired products and investing upfront with producing companies.
Previously, parts and machinery would need to be produced and tested prior to a buy contract, but given the sanctions in place against the country, steelmakers will in essence invest and take a risk position on the outcome when a jury committee accepts a domestic supplier’s plans. The approach is expected to help Iranian steel companies address “limits from sanctions in importing consuming materials and technologies for production.”
According to IMIDRO, Iranian billet exports decreased 15 percent in the first nine months of the current Persian Year (March 21 to December 22, 2018) compared to the same period in the previous year. Iranian exports have also affected the markets in Turkey and other countries in the region due to the downward pressure on prices from the sanctions. In the same nine-month period, Mobarekah produced 5.5 million mt of DRI and 5 million mt of slab compared to 5.6 million mt of DRI and 4.9 million mt of slab in the same time period the previous year.