New Iranian policies to satisfy domestic CR demand

In order to satisfy the domestic demand for cold rolled products, the Iranian government and domestic producers alike have adopted various new strategies. The head of Iran Steel Producers Association, Mr. Taqi Bahrami, has announced that the country's cold rolled steel production will be increased by more than three times from the current 1.5 million metric tons to about five million metric tons by the end of the current Iranian year (March 20, 2007). The Iranian government is to make available approximately $90 million in loans to the cold rolling mills for the import of semi-finished materials needed for CR production. In addition, one of the main Iranian cold rolled producers, Mobarakeh Steel Complex, has announced that the company will redirect some export volumes of cold rolled sheet in order to satisfy the needs of the domestic market, starting from January 21 (beginning of Iranian month Bahman). Mobarakeh Steel currently supplies 78 percent of its production to the domestic market, with the remaining 22 percent going for export. The company's managing director, Mr. Mohammad-Reza Shamsabadi, stated that Mobarakeh Steel will increase its domestic CR supply from 750,000 metric tons to 1.2 million metric tons. The decrease in CR production from about one million metric tons produced last year to 750,000 metric tons in the current (Iranian) year led to a 150 percent increase in imports, Mr. Shamsabadi emphasized. Moreover, Mobarakeh Steel is to allocate 32 percent of its production capacities for the production of CR.