Iran's finished steel production increased marginally by 4% y-o-y to 9.42 million tonnes (mnt) in the first five months of the current Persian year (21 March-20 August, 2023), according to data released by the Iranian Steel Producers Association (ISPA).

• Out of total production, long steel stood at 5.39 mnt (up 4% y-o-y) and flat steel was at 4.02 mnt (up 38% y-o-y).
  
  
• Semi-finished steel output stood at 13.02 mnt, up 3% y-o-y. Billets and blooms accounted for 8.23 mnt of the total semis output, up 7% y-o-y, while slabs production inched down by 4% y-o-y to 4.79 mnt.
  
  
• As per ISPA data, direct reduced iron (DRI) production stood at 15.69 mnt in the period under review, an increase of 8% y-o-y.
  
  

Outlook

Recent announcement of reimposition of export duties by the Iranian government may result in a decrease in exports volumes affecting production, SteelMint notes. Also, the ongoing discussions on revising gas pricing mechanism may impact steel production levels in Iran, specially during winters.