No Surge in Production Possible Without Facilitating Exports

IRAN NEWS ECONOMIC DESK

TEHRAN – Chairman of Iran Steel Producers Association criticized recent decision of the government for limiting the amount of steel exports and called it a serious hurdle in way of the slogan of surge in production.

Dr. Bahram Sobhani said that instead of encouraging the exports, the government restricts exports, adding that with the current restrictions, the surge in production in steel industry will be in danger.

He criticized recent decision of the government to limit exports of steel to only 25 percent of the production, and called it a hurdle in way of surge in production.

He noted that all decisions which are made are against the needs of national steel industry and the government creates hurdle in way of steel exporters instead of encouraging them.

Sobhani reiterated that surge in production will be impossible without facilitating the export process.

On the current programs of steel production in the country and the amount of production surplus in the country, he said it is expected the raw steel production to hit 30m tons this year. He added that some 10 million tons of raw steel will be produced in Mobarakeh Steel Group, Hormuzgan Steel Company and Saba Steel Company.

Sobhani noted that if production of 1.5m tons of Khouzestan Steel Company’s slab steel production is reduced from 30m tons target, some 28.5m tons of steel will be produced in the country and some 7m tons is needed by the domestic production in the rolling units. He added that the country’s steel production is more than what the domestic market needs and some 10 to 11m tons of produced steel ingots are surplus in the country and should be exported.

He also criticized restrictions on steel exports, adding that he does not know why there is concern regarding steel exports. He further said while two-thirds of steel ingot production is over than domestic market needs and it should be exported, there is no reason to have concerns about the amount of steel exports.

Sobhani reiterated that exports of 10 to 11m tons of steel in the sanctions era is not an easy job and the government in this condition should facilitate the exports rather than creating hurdle.

He recommended while the country is in dire need of non-oil exports forex, it is necessary the exports to be facilitated.

He warned if the country wants to materialize the surge in production, it should think of solving the current cumbersome regulations, reiterated that with current regulations, last year’s  record of 27m tons of production will not touch 30m tons this year, and to this end, all should be mobilized to ease exports.