18% Increase in Iran's Steel Production Before the Impact of Sanctions Return

Global Steel Association statistics indicate that Iran's steel production increased by approximately 17.8% in 2018, reaching 25 million tons. Total global steel production also rose by 4.5% compared to 2017, reaching about 1.79 billion tons. Thus, Iran accounted for 1.4% of total global steel production last year. Meanwhile, over half of the world's steel is produced in China. Monthly statistics from the Global Steel Association show that the growth in Iran's steel production is mainly due to increased production capacity in the last months of 2017 and the beginning of last year. According to Iranian customs statistics, exports of iron along with steel and cast iron (both iron alloys) during the first nine months of the current year grew by 37% compared to the same period last year, exceeding three billion dollars. These three products account for 9.2% of the country's total non-oil exports. However, monthly customs statistics indicate the impact of sanctions on iron and its alloys exports. In the first half of the current solar year, the growth of iron, steel, and cast iron exports compared to the first half of 96 was about 47%, but the growth rate has decreased in the autumn. Specifically, in Azar (December) of the current year, Iran had 271 million dollars in iron, steel, and cast iron exports, while the average exports in the first eight months of the year were 350 million dollars. Reza Shahristani, a board member of the Steel Association, told Tasnim News Agency on December 9 that after the onset of U.S. sanctions, the costs of shipping goods and transferring money in steel exports have risen significantly, preventing producers from exporting their surplus products. He stated, 'We are exporting our goods with difficulty. If steel is not exported, the surplus production will return to the country, leading to price drops, negative competition, and even a decrease in production and unemployment nationwide, as producers are compelled to reduce production volume when there is insufficient market demand for steel.'