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MSC delivery of products to domestic market up by 76 percent


According to the World Steel Association, Mobarakeh Steel Company (MSC) was the largest producer of steel products in the Middle East and 47th in the world last year, MSC’s Chief Marketing Officer Mahmoud Akbari said in an interview with Steel Newsletter.
He further said by carrying out expansion projects and raising production capacity, Mobarakeh Steel Company has considerably contributed to the improvement of Iran’s berth in the world ranking of top steelmakers. “In the domestic market, MSC increased its sales of flat steel products to 5.864 million tons in the 12 months to late March 2019, up 76 percent up from 3.331 million tons in the year to March 20, 2016. In the same period, the company’s delivery of hot-rolled products rose to 4.080 million tons from the previous 2.291 million tons. As a result, sales of products to pipe and profile making companies increased to 1.709 million tons from an earlier 779,000 tons, posting remarkable growth of 119 percent (more than a two-fold rise).”
MSC’s delivery of 2.587 million tons of products in the five months to August 22, 2019 posted an increase of more than 74 percent over a similar period in 2015 in which it sold 1.491 million tons, he said. “In the same period, sales of hot-rolled products rose to 1.892 million tons from 978,000 tons, registering 93 percent growth. The company’s sales to pipe and profile making companies went up from 353,000 tons to 877,000 tons which showed a hike of 148 percent.”
Akbari said that in the year which ended on March 20, 2019 the company sold 886,000 tons of products (two millimeters and less in thickness) to pipe and profile industries, up 35 percent from a year earlier (656,000 tons). “The upward trend shows a 1,300 percent increase over the year to late March 2016 in which the company sold just 62,000 tons of such products. In the five months to August 22, 2019, the company sold 472,000 tons of such products, posting 56 percent growth over corresponding period last year.”
He pointed to the downward trend in imports of flat steel products from early 2016 to early 2019 (from 3.678 million tons to 897,000 tons) and said, “The downward trend was more palpable when it came to imports of hot-rolled products. Imports of such products were down from 901,000 tons in 2016 to 189,000 tons in early 2019. It should be noted that about one million tons of hot-rolled products was imported to the country subject to alloy steel tariffs. Considering this, imports of hot-rolled products decreased by more than 90 percent. In the four months to July 22, 2019, imports of hot-rolled products stood at 7,000 tons. The downward trend suggests imports are gradually going down to zero which prevents the outflow of hard currency from the country. The growing delivery of MSC’s products to the domestic market helps the country save $1.5 billion annually thanks to the timely implementation of expansion projects in the company and sufficient delivery of goods to the market, something which has met the needs of Iranian industries, created jobs as well as added value, and raised production and exports of steel products.”
MSC’s sale of goods including 2-mm hot-rolled steel sheets in the market has pushed up exports of products made from MSC steel sheets by the downstream industries, Akbari said. “A case in point is a 180 percent rise in exports of pipes and profiles from 108,000 tons in 2018 to 298,000 tons in the year to early 2019. The export of pipes and profiles, the biggest export in recent years, is up by 96 percent over the year to late March 2016 when the company only exported 152,000 tons of such products. The hike in exports of steel sheet products against a backdrop of a 70-percent decrease in imports of hot-rolled sheets has come on the back of growing production on the domestic market and soaring sales by MSC through letters of credit. It also shows that the domestic market is glutted with steel products. These measures, together with MSC’s support, have brought about calm, peace of mind and finances for different industries including pipe and profile industry. They have also helped companies purchasing MSC’s products sustain their production and exports, and experience an upward spiral in their production and export processes. What is worth mentioning is the fact that exports of flat steel products have seen a steep downward trend (more than 65 percent over the year to late March 2016) due to the priority given to measures to meet domestic needs.”    
He went on to say that by tapping into its maximal potential, Mobarakeh Steel Company has managed to do its share when it comes to materializing the macro objectives of the country in a year designated as Year of Boosting Production. “Mobarakeh Steel Company has supplied the products different industries need and helped finance them by sale on credit, investment in different projects, including slabs needed for producing oil and gas pipelines with sour service, and production of thin hot-rolled sheets. In doing so, the giant steelmaker seeks to supply and support national industries and help the country cut its dependence on foreign nations.”
In conclusion, Akbari said Mobarakeh Steel Company has had a brilliant record when it comes to producing steel products and supplying major industries in the country thanks to the tireless efforts of its managers and staff members. “Despite the existence of unprecedentedly tough international sanctions, the company supplies the raw materials its production lines need from abroad. Unfortunately it has faced stiff challenges as far as supplying domestic raw materials such as concentrates, iron ore and pellets is concerned, something which may push down or halt production down the line. This comes as continuation of production in more than 5,000 plants and small- and large-sized workshops in the downstream and upstream parts depends on maximal production in Mobarakeh Steel Company. That’s why we need to work out solutions to this problem as soon as possible.”



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