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Iran Steel Industry cooperates with foreign companies

Iran has steel mills that have produced more than 16,4 million tons of crude Steel in last year. The produced amount has faced about 11% year-on-year growth, according to World Steel Association. The chart below, shows the amount of imported and exported Steel products of Iran in 2014:

Iran Steel 2014

Iran Steel industry’s exports consists of two parts, Indirect exports and direct exports, which the first group has a much bigger share in Exports. The products and their share in indirect exports are as follow:

Iran steel indirect share




Iran is now world’s 16th exporter in Steel industry, in the year 2017, as the production and exports has increased over the time. The amount of sold Steel in global market has reached to 18 million tons (apart from indirect products).

The report from Iran Industry and mining ministry shows that 16.5 million tons were added to Iran’s concentrate production and 13 million tons to the country’s steel pellets production, and is planning to overcome its challenges by year 2025 to reach the set target in Steel industry.

One of the main challenges on the way, is the high production cost and finished price in comparison to other countries and makes it hard for iran to hold on to competition in international market. And as there is a reason to every problem, the high costs are due to underdeveloped rail infrastructures in Iran. The other reason to Iran’s challenges in Steel industry is the lack of stability in Global market of steel industry, which can end in disruptions. In order to enter the global arena successfully, domestic steelmakers need to try to reach international standards in productions and to be able to compete with high profile companies. As a way to help Steelmakers, the Government has exempted the imports from duties,to import mining and steel secondhand machinery if they are not older than 10 years.

Iran is still an attractive market for foreign companies because energy costs in Iran are much cheaper than in Europe. Several large steel companies such as Italy’s Danieli, Spain’s Sarralle Equipos Siderogicos, and other companies from Russia and Germany, have been actively participating in the Iranian industry.  For instance, Italy’s Danieli signed a joint venture with an Iranian partner to establish and run steel machinery production plant in Alborz Province. And as a result to Iran’s Company setup rules and regulations, they have a company representative in Iran named Danieli Persia. The company had a 40 million Euro investment to open the company completely mad by the italian company and started working on May 2017. The plant’s main purpose is to boost the competitiveness of Iranian steel and non-ferrous metal producers by improving domestic industrial services and increasing Iran’s self-sufficiency as regards machinery manufacture. Danieli is planning to manufacture the machinery for its projects and clients in Iran, especially those active in the oil, gas, petrochemical and steel sectors. Danieli Persia has the capacity to annually manufacture two induction furnaces, two electric arc furnaces, one lime kiln, two vacuum heat treatment furnaces and two heat treatment furnaces  all of these information are according to the Iranian Steel Producers Association.

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