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Government policy is prevention of raw material sale; exports of raw materials down to below 8 million tons from 23 million tons


Minister of Industries, Mines and Trade Reza Rahmani went on an inspection tour of the production lines of Mobarakeh Steel Company (MSC) on Saturday September 21, 2019 and held talks with MSC Managing Director Hamidreza Azimian.
During the visit – on which he was accompanied by his deputy for mines and mining affairs, Isfahan’s governor general, the MP representing Mobarakeh in the Islamic Consultative Assembly and members of Mobarakeh Security Council – the industry minister brought up government plans to support domestic producers. He said government policies mainly focus on not selling raw materials on any front. “To that end, the government has formulated and implemented a number of strategic plans. For instance, annual exports of iron ore have decreased to bellow eight million tons from the previous 23 million tons and the downward trend has continued year after year.”
He said plans to prevent selling raw materials are being implemented in earnest. “To maximally meet the need of domestic steelmakers, the industry ministry has put on its agenda plans to explore, excavate and process new mines. Some progress has been made. God willing, we will face no problem whatsoever in supplying steelmakers with the raw materials thanks to the current measures and future plans.”
Rahmani stressed that steelmaking plants, especially Mobarakeh Steel Company, have taken effective steps toward helping the steel industry become self-sufficient and master modern technologies. “Fortunately, the measures taken so far have resulted in the construction and inauguration of new [production] lines.”
Products once imported are being produced in plants like MSC        
The minister went on to say that thanks to the endeavors of the managers and staff members of steelmaking plants, including Mobarakeh Steel Company, a large number of steel sheets and products which were once imported are being produced in plants such as MSC, something which has obviated the need for the country to import these products.
Tariffs likely to guarantee supply of raw materials for domestic steelmakers
In an interview with Steel Newsletter, Deputy Minister of Industry, Mines and Trade Jafar Sarghini said the government decision to impose tariffs on iron ore exports takes effect on September 23 and will remain in place by the end of the year (March 20, 2020). “If we reach a balance by then, the government may reconsider its decision. For now the policy communicated by the government will be implemented. We hope this policy can help operationalize support for domestic industries. For now, the tariffs seem to have a deterrent effect and guarantee the supply of raw materials for domestic steelmakers. We hope this could help partly remove the problems domestic steelmakers are faced with.”
 
In a year designated as “Year of Production Boost” and in the face of restrictions, Mobarakeh Steel Group – building on the endeavors of its managers and staff – has tried to meet the needs of downstream industries for steel products.
During the industry minister’s visit, the MSC chief presented a detailed report on his company’s achievements and plans to maintain its 50% share of steel production in the country by 2025. Azimian said in “Year of Production Boost”, Mobarakeh Steel Group has tried to defy the existing restrictions and provide downstream industries with steel products. “To that end, MSC has built on the endeavors of its managers and personnel and prevented any supply disruption in the country.”
Azimian brought up his company’s measures to indigenize the production of parts as well as its strategies to acquire the knowhow for constructing steelmaking plants and said, “Mobarakeh Steel Company has made great achievements through support for domestic producers and accelerators, and expansion of cooperation with knowledge-based companies and universities.”       


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