According to CEO of Iranian Mines and Mining Industries Development & Renovation Organization (IMIDRO), Hasan Pelarak, steel product prices in Iran will continue to decrease in the future.
Steel prices in Iran could dip further on the back of Iran's government policy to control prices. Recent movements in world steel market also have a knock-on-effect on Iran's domestic market.
Hormozgan Steel, Khorasan Steel's second DRI plant and Arfa Iron and Steel will put into operation until the end of current Iranian year ending 20th of March which will increase steel production capacity to 20 mt per year.
While, steel plants now operate with full capacity, It is expected that Iran's steel output by the end of current Iranian year to surge at least by 5%.
"Second wave of economical crisis and low level of demand leads to depression of prices in the world. This also helps the prices to go down in Iran" Mr. Pelarak said.
To control steel prices, 5-7 million tonnes of billet will be imported.
Steel production capacity has been doubled in Iran during the last 4 years and reaches 17.5m tonnes by now. It is expected that it will hit 20m tonnes in the next 4 months. By inauguration of some new plants in the future, production capacity by the end of fifth development plan will increase to 40 million tones / year.
Iran Steel Service Center