Iran’s consumption of steel has increased significantly in the two month to late May compared to the same period last year amid a surge in demand for domestically-produced steel in the country’s manufacturing sector.
A Monday report by the IRIB News cited figures from Iranian Steel Producers Association (ISPA) showing that Iranian customers had purchased some 2.432 million metric tons (mt) of semi-finished steel, or ingots, produced in the country in the two months to May 21.
The figure was an increase of 22% compared to the April-May 2022, said the report, adding that total steel ingots produced in Iran in the two months to late May had reached nearly 3 million mt.
Consumption of other steel and iron products produced by Iranian still mills also increased over April-March this year.
Some 3.357 million mt of the domestically-produced sponge iron, also known as direct reduced iron, were supplied to Iranian customers over the two months to late May, up 4% year on year.
Long steel supply to Iranian manufacturers rose by 2% year on year in April-May to reach 0.823 million mt from the total domestic output of 0.99 million mt reported over the period, showed the ISPA figures.
Steel products consumption in Iran remained almost flat in the two months to late May compared to the same period last year at 1.686 million mt, showed the figures.
The figures come amid reports suggesting that Iranian carmakers have increased their purchases of steel from domestic companies as they plan to reach record output levels.
Iran is the 10th largest producer of steel in the world. The country has seen a surge in its production and exports of steel in recent years, mainly because of increased government support for the sector, which has been a response to US sanctions on the country’s oil exports.
ISPA figures published in mid-May had showed that total production of steel in Iran had risen by 1% year on year in April.