Decline in Iran's steel exports signals economic implications, amidst growth in sponge iron sector

Customs data released indicates a significant decline in Iran’s steel exports during the first two months of the current year 1403 (April-May 2024). The total volume of steel exports, including semi-finished steel and steel products, dropped by 23% compared to the same period last year.

Iran exported 1,483,000 tons of steel during the initial two months of Iranian year 1403 (April-May 2024). The country exported 817 thousand tons of semi-finished steel, witnessing a sharp decline of 42% compared to the same period last year.

Overall, Iran’s steel exports increased from April-May 2023 to April-May 2024. The following steel product categories showed significant changes:

Steel Profiles, a key component in construction and infrastructure projects, witnessed a substantial surge in export volume, soaring from 426 thousand tons in April-May 2023 to 616 thousand tons in April-May 2024, marking an impressive increase of 45%.

Similarly, Rebar, vital for reinforcing concrete structures, saw a significant uptick, climbing from 304 thousand tons to 406 thousand tons during the same period, indicating a notable 34% rise.

Wire rod, essential for multiple industrial applications, witnessed a remarkable surge, more than doubling in production from 60 thousand tons to 122 thousand tons, reflecting a striking 103% increase.

Angle and Other steel profiles products experienced growth trajectory, rising from 37 thousand tons to 53 thousand tons, showcasing a notable 43% increase.

However, not all segments experienced positive growth. Hot Rolled Coil( HRC) , Coated Steel Sheet, and Semi-finished Products observed declines in export volumes. HRC plummeted by 49%, Coated Steel Sheet decreased by 30%, and Semi-finished Products declined by 42%.

This decline reflects potential challenges or shifts in demand patterns both domestically and internationally. However, there was a positive trend in sponge iron exports, which grew by 31% to reach 269,000 tons. The decline in overall steel exports may have economic implications for Iran, while the growth in sponge iron exports indicates a positive trend in that specific sector.