Sanctions unable to affect Iranian steel industry

Sanctions on Iranian economic have left almost no impact on the country's steel industry, an expert said.Speaking on the sidelines of the World Steel Association's 45th annual meeting in Paris on October 12 2011, an expert from the Iranian steel industry said that the economic sanctions of the US and the EU have had trivial impacts on Iran's steel industry. He added that local producers, including the country's largest flat steel producer Mobarakeh Steel, Khouzestan Steel and Esfahan Steel, have recently increased their production beyond their initial plans. Assessing the reasons behind the growth in Iranian domestic steel production, the Iranian steel expert said that Iran is currently producing about 14 million tons of steel annually, whereas its annual steel consumption totals about 22 million tons to 24 million tons. Accordingly the gap between the country's steel production and consumption leaves vast room for further increases in domestic steel production. The Iranian steel industry source stated that some Iranian producers favorably located to expand to the export markets such as Hormozgan Steel in Bandar Abbas near the Persian Gulf, are ready to head to the export markets, adding that Iran's growing steel exports may create a profitable equilibrium with its steel imports.