Iran to expand steel capacity over 20 million tons by 2010
In line with the fourth 5-year development plan, Iran is planning to increase its steel production capacity over 20 million tons per year. Main target of this plan is to achieve 8% growth in economy between March 2005-2010. It is reported that further measures, controlling steel imports and assistance regarding Iranian steel industry will be necessary as well as foreign investments in order to achieve targets in both current third and fourth 5-year development plans. Steel production targets are 12.5 and around 22 million tons respectively. However, steel production target of 12.5 million tons of the third 5-year development plan ending on March 19, 2005 seems to be unaccomplishable as currently production capacity is at 9 million tons level. Besides, it is stated that it will take three more years to reach original steel production target. This makes many think that there will inevitably be a delay in carrying out both development plans. By the way, steel prices in local Iranian market reportedly drew back by 15% to 20% this month following the downward trend in international markets, according to market news from the industry. Besides, huge stocks of imported steel in northern ports contributed to the fall in steel prices in the country.