Metal and Steel industry is one of the biggest industries in Iran after petrochemical industry and is one of the most interesting fields of investment not only in Iran, but also in most of the world. This article gives the readers the opportunity to know more about this industry.
Metal industry plays several roles in our life and is closely linked to other industrial sectors such as building and construction, the automotive industry, the electrical industry and mechanical engineering. As a result, it could be an attractive industry although this may sound a bit weird because of its decline trend in price recently.
Based on data published by World Steel Association, world crude steel production for the 66 countries was 137 million tonnes in March 2016, a -0.5% decrease compared to March 2015. 263.6 Mt of crude steel has been produced in Asia Continent, a decrease of -3.1% over the first quarter of 2015. The EU produced 40.9 Mt of crude steel in the first quarter of 2016, down by -7.0% compared to the same quarter of 2015. North America’s crude steel production in the first three months of 2016 was 27.5 Mt, a decrease of -1.1% compared to the first quarter of 2015. The C.I.S. produced 25.0 Mt of crude steel in the first three months of 2016, a decrease of -0.4% over the same months of 2015. This is mostly because of the reduction in world’s demand especially in china.
In addition, in the table below the world capacity utilization has been shown:
Furthermore, the statistics of country’s steel production in 2014 and 2015 have shown in the table below:
World Production: (Raw Steel – M tonnes)
Iran’s production was 16.8 and 16.5 Mt respectively in 2014 and 2015. The production statistics of 8 biggest factories in Iran in 2015 which produced steel is shown in the table below:
|Company name||M Tonnes|
|Isfahan’s Mobaarke steel Co.||5.3|
|Khouzestan Steel Co.||3.5|
|Isafahan’s Steel Co.||2.5|
|Hormozgan Steel Co.||1.17|
|Khorasan Steel Co.||0.7|
Now, Iran ranked 14th in the world in producing steel and its production is around 24 Mt per year and it will be around 55 Mt in 2025 and by reaching this target, its rank will be 7th in the world estimated by Mine news.
There are some big factories in this industry in Iran such as Khouzestan Steel Company, Isfahan’s Mobarakeh Steel Company, National Iranian Copper Industries Co. and etc. that dispel the most people’s needs not only in Iran, but also in other countries by exporting. Although some sanctions in previous years acted as a barrier for this industry to develop, now it paves its puddle to produce more and more.
As a result, Iranian Steel companies would be an interesting field of investment that after lifting of sanctions and increase in global prices, it would be probable to see those who keep a close eye on these industries in these rainy days will gain the most.