Today Picture
MSC poised to set new production record in the months to come

A 12th edition of the International Metal, Steel, Raw Material, Metallurgy and Casting Exhibition was held in Mashhad (16-19 August 2018). During the event, local and foreign visitors came to the stall of Mobarakeh Steel Company (MSC) to learn about its performance and achievements.
According to the correspondent of Steel Newsletter, at the event, MSC Deputy Director for Sales and Marketing Mahmoud Akbari, Manager of Planning and Market Research Gholamreza Taheri and Public Relations Manager Mohammad Nazemi Harandi talked about production-related developments at the steel giant and fielded questions posed by the managers and representatives of local and foreign firms.
More than 50 local firms and representative of 15 foreign brands showcased their industrial, mining, road-building and steel industry machinery and tools during the 4-day exhibition.
On the sidelines of the exhibition, in an interview with the Iranian Labor News Agency (ILNA), Nazemi Harandi described the steel industry as one of the most fundamental industries of the country and said a look at the rankings of top steel producers shows that the most powerful global economies top that list. “China, Japan, South Korea, India, the US, the EU and Brazil, which are among the most advanced economies in the world, top the list of global steel producers.”       
He further said last year Iran was the 13th largest producer of steel in the world. Mobarakeh Steel Company, a giant holding company with as many as 60 subsidiaries, accounts for half of the country’s steel production.
Nazemi Harandi went on to say MSC was founded when Iran was going through one of its roughest patches – during the Sacred Defense – to play a role in the development of the country. Today all managers and staff members of this giant are trying their best to help realize that goal. The company’s slogan: “An MSC as vast as Iran” has left an MSC mark throughout the country. “For instance, in the south, Hormozgan Steel Company, an MSC subsidiary in Bandar Abbas, is currently producing 1.5 million tons of steel and plans to increase its output.”
He said MSC has set up the country’s largest pelletizing plant (Sangan) in Khaf, Khorasan Razavi Province, adding Khaf, which is home to very honorable, people does have what it takes to develop further. That means measures should be taken to develop that area’s industry, mining and infrastructure, and MSC investment there is in line with that line of thinking.
He described as important the development in the Khaf region and said industrial development will result in balanced, multifaceted development in that important part of the country. The fact that the northeastern region neighbors Afghanistan means, on top of economic achievements, the development of Sangan will have positive security results.
In response to a question about the most serious challenges the steel industry is faced with, he said just like other industries, the steel sector faces a situation in which opportunities and challenges abound and the biggest challenge to the industry is infrastructural in nature.
He said steel production has developed, but the country’s infrastructure has failed to keep pace. Development of road, rail and sea transportation networks and energy supply and distribution infrastructure such as power plants, electricity transmission networks, natural gas production and distribution and water supply networks are the areas which can absorb investment.
Harandi went on to say all those involved in the steel industry are grappling with a number of business-related challenges. Unfortunately, economic conditions are not normal and the rise in the value of foreign currencies against the rial has given rise to new challenges.
He said the price tag of imported steel is twice as much as the price of the locally manufactured steel, adding in the past, the country used to import steel to meet part of its domestic need, but today steel imports are not economical and this puts pressure on local manufacturers to produce more and fill the vacuum created by declining imports.
Harandi further stated, “On the other hand, there is a wide gap between the price the government sets for steel and the market price; thus, part of the country’s wandering liquidity that used to be directed toward the forex, gold and automotive markets is now closing in on the steel market. As a result, demand for certain products on the Commodity Exchange has increased 3- or even 4-fold and this is a major problem.
He said the Commodity Exchange makes things transparent and creates a healthy environment for supply and demand; although MSC has increased the volume of the products it delivers on the local market, due to profit-seeking by some players, its fairly inexpensive products increase the flow of money into the pockets of profit-seekers rather than finding their way into downstream industries and being offered to end-users at a reasonable price. What is very unfortunate is that the more these individuals have profited, the more ferocious their attacks against steelmakers and the Commodity Exchange have become.
Harandi expressed hope things get better in the days to come and said we expect esteemed officials to have a better understanding of the situation and make proper decisions accordingly. “Over the years, MSC has relied on the potential of its staff and firmly believed in the importance of steel production and accomplished greet deeds. The expansion projects which got underway in 2013 have already resulted in a 40 percent rise in production. “Today we can proudly tell our customers we will meet their needs.”
In conclusion, he said, “On behalf of MSC, today I can announce that with God’s grace MSC will set a new production record in the months to come, something which will constitute a crushing response to enemy threats. I hope we will be able to ride out the current storm and secure continuous progress on the back of divine favor as well as tireless efforts and commitment by members of the public and officials.”

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