Iranian finished steel production declined -8% year-on-year in the first Iranian calendar-year month through 19 April to 1.53 million tonnes. This was the first output drop in a decade, according to the Iranian Steel Producers Association (ISPA).

Flat products output declined -3% to 874,000t, as coated flats production slumped -47% to 73,000t and cold rolled flats output fell -5% to 197,000t. Hot rolled flats output was flat at 786,000t.

Longs output dropped -13% to 660,000t, with rebar output declining -12% to 520,000t and sections production falling -22% to 85,000t.

Iran’s major steel mills, moreover, saw exports halve in the 19-April month to 221,592t.

The lower tonnages are the result of the coronavirus pandemic, ISPA says. “In a situation where global demand for steel has fallen sharply due to the crisis, steel export conditions should be facilitated so that the country's steel industry suffers the least damage,” the association observes. “Many countries are already offering export incentives for their steel industry, and in addition, through economic stimulus packages, they are seeking to increase demand for goods, including steel.”

ISPA previously criticised the industry, mine and trade ministry’s ruling that steelmakers are permitted to export only 25% of their production in an attempt to reduce steel tonnages leaving the country (see Kallanish passim). Mills are also required to offer 60% of their output on Iran’s Mercantile Exchange for sale to the domestic market.

Iranian one-month semi-finished steel output nevertheless rose 2% to 2.32mt, despite billet and bloom production declining -4% to 1.28mt. Slab output was up 12% to 1.04mt.

Direct reduced iron output, meanwhile, grew 3% to 2.63mt.

Iranian crude steel production grew 10% on-year in the Iranian year through 19 March 2020 to 27.2mt, with finished steel output up 6% to 20.2mt. DRI output rose 6% to 20.2mt.