Iran's steel dilemma: Shortages persist despite annual imports worth millions

Iran, despite being the 10th largest global steel producer, faces the necessity of importing sheets due to persistent shortages. Despite annual imports valued at hundreds of millions of dollars, downstream production companies dependent on sheets continue to experience supply challenges, leading to idle capacities. Customs reports indicate a significant increase in hot sheet imports, up by around 50% in the first half of the current year compared to the previous year.

However, precise consumption statistics are unavailable, contributing to market instability. To address this issue, there's a call to prioritize meeting the needs of downstream production companies that rely on sheets as raw materials.

Saifullah Amiri, Director General of the Mineral Industries Office, highlights the reasons behind the surge in hot sheet imports, including exchanges with gold billet or raw materials. Despite substantial steel imports, companies with a fundamental need for sheets struggle to operate at full capacity. Mobarakeh Steel is considering initiating hot rolling 2 to alleviate the shortage. The stock market reveals a significant disparity in demand and supply, with rebar consumption at 20-30% and sheet metal demand exceeding supply by 200-300%.