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Iran’s Crude Steel Market Outlook Report

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Crude steel comes in different forms such as slabs, billets and blooms, and ingots. Produced using continuous casting, slabs, billets, and blooms take the largest share of the crude steel market. Slabs are used to produce intermediate flat products (such as hot-rolled coil), while billets and blooms are used to produce long products (such as rebar and sections). Generally, almost all crude steel can be divided into two major categories based on production method: blast furnaces (BF) and electric furnaces (EF). EFs used in steelmaking include induction furnaces and electric arc furnaces (EAF). The economies of scale in BFs is generally better than that of induction furnaces; however, economic EAF capacities include a wider range of relatively small capacities rather than large ones.

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Product Description

With a GDP of $415 billion in 2019, Iran was the third largest economy in the region that year. While the country’s economy was steadily growing after the drop in 2012 due to the sanctions, it dipped once again in 2019 thanks to the return of the sanctions. Iran’s massive iron ore reserves have been strong drivers of developments in the iron and steel industry; the country is the largest producer of iron ore in the region. Steel output in Iran has increased significantly over the past years; the country was the tenth largest producer on a global scale in 2019.

Market drivers of Iran’s crude steel

The Iran Vision 2025 has set a target of 55 million tonnes for crude steel capacity and 12 million tonnes of exports. Towards this goal, the government has made massive investments to build the required capacities. The government is expected to support the demand for crude steel and downstream sectors in line with the goals set in the Iran Vision 2025.

Construction and automotive are the main consumers of steel in Iran. Due to the sanctions and the surge in prices, both markets contracted; however, the industries are expected to have relative growth over the coming years, which will boost demand for steel products and consequently crude steel.

Owing to the increasing industrialization, the share of the manufacturing sector in Iran’s economy has increased. Along with industrial development, demand for steel as the most commonly used industrial metal will grow. The uptrend in the share of the manufacturing sector in the country’s economy is expected to continue over the coming years, driving demand for steel along with the growing industrialization.

Overview of Iran’s crude steel market

Most of the crude steel in Iran is produced by melting sponge iron in electric furnaces. Thanks to abundant access to natural gas as well as poor coal reserves, the country has made massive investment in direct reduction using gas and electric furnaces. It should be noted that most of the electricity used for melting sponge iron is generated in combined cycle power plants, which burn natural gas. Moreover, rich iron ore reserves also drive developments in the upstream parts of the iron and steel industry. Iran is planning to ramp up crude steel capacity to 55 million tonnes by 2025. Although ongoing projects can guarantee that goal, forecasts suggest relatively low operating rates for steelmakers in the country, mostly as a result of tight raw material availability. Yet, the country’s net exports of crude steel are expected to increase out to 2025, but tight raw material availability will put pressure on net exports afterwards.

Breakdown of Iran’s crude steel market

The crude steel market in Iran can be analyzed under three product categories: slabs, billets and blooms, and ingots. Billets and blooms account for a large share of the country’s crude steel output, which are used to produce long products. Crude steel products can also be categorized based on composition, including carbon steel, stainless steel, and alloy steel. Carbon steel has the largest share in Iran’s steel consumption, and it is the lowest-priced. Alloy steel is the next largest in terms of market share, while stainless steel has the smallest share but the highest prices. The country’s consumption of crude steel is also analyzed in terms of applications in steel products and consumer industries.

Key players in Iran’s crude steel market

  • Esfahan Steel Company (ESC)
  • Khouzestan Steel
  • Khorasan Steel
  • Hormozgan Steel
  • South Kaveh Steel
  • Arfa Steel

Additional Information

Industry

Crude Steel
Region

Iran
Report Type

Industry Report

Specifications

Report Attribute Details
The base year for estimation 2021
Historical data 2011-2020
Forecast period 2021-2040
Quantitative units Value in USD and Volume in Tonne
Report coverage Market Overview, Dynamics, Market Outlook, Risks to Forecast, Consumer Market, Industry Overview, Market Landscape, Competitive Landscape, Market Attractiveness, External Macro Environment Analysis
Segments covered Source, Composition, Type, Application
Pricing and purchase options Please explore our purchase options to meet your exact research needs.

Reasons to Buy

  • Recognize the geographical distribution of import demand
  • Identify the current and future key players of the trading market
  • Achieve a better insight on potential target markets
  • Understand the behavior of major suppliers/customers either globally or regionally
  • Identify competitors as a feed for market analysis

Table of Content

  1. Executive summary
  2. Introduction
    • Objective
    • Market under study
    • Product
      • Product specifications
      • Consumption structure
        • Applications
        • Physical properties
      • Subjects discussed
      • Geographical scope under study
      • Study timeframe
      • Study currency
      • Potential audience
  1. Market dynamics
    • Market drivers
    • Restraints
    • Opportunities
    • Challenges
  2. Market overview
    • Market size
    • Industry capacities
      • Existing capacities
        • Capacity distribution
        • Geographical distribution of capacities
      • Future capacities
    • Output
      • Output trends
      • Operating rates
    • Consumption
      • Consumption trend
      • Consumption Share of domestic product
    • Trade
      • Exports
      • Imports
      • Trade balance
      • Market balance
    • Market breakdown by product type
    • Market breakdown by product type
    • Market breakdown by application
    • Inventory
      • Producers inventory
      • Consumers inventory
      • Traders inventory
  1. Market outlook
    • Market factors
      • Raw materials
      • Costs and prices
      • Competition
      • The government
      • Other factors
    • Future scenarios
    • Risks to forecast
  2. Consumer markets
    • End-user markets
      • Building construction
      • Infrastructure construction
      • Transportation manufacturing
      • Industrial equipment manufacturing
      • Durable goods manufacturing
      • Consumable goods manufacturing
    • Direct consumer markets
      • Major Direct consumers
        • Existing capacities
        • Drivers
  1. Export potentials
    • Destinations
      • Trade and insurance costs
      • Import market suppliers
      • Producers potential share
  1. Industry overview
    • Raw materials
      • The supply volume of raw materials
      • Supply channels of raw materials
      • Raw materials procurement costs
    • Cost structure of producers
    • Production cost curve
    • Industry value added
    • Generated new scrap
    • Technology
  2. Market landscape
    • Domestic sales markets
      • Pricing in the domestic market
      • Potential domestic demand
      • Trade agreements for imports
      • Foreign suppliers
    • Foreign sales market
      • Prices
      • Potential markets overview
      • Trade agreements for exports
      • Foreign customers
  1. Competitive landscape
    • Producers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
    • Consumers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
  1. Market attractiveness
    • Industry rivalry
    • Threat of new entrants
    • Threat of substitutes
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Conclusion of Porter analysis
  2. PESTEL analysis
    • Political factors
    • Economic factors
    • Social factors
    • Technology factors
    • Environmental factors
    • Legal factors
  3. SWOT analysis
    • Large-scale companies with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Large-scale companies with unfavorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with unfavorable conditions
      • Short-term strategies
      • Long-term strategies

List of Figures

  1. Output and consumption; 2011-2020
  2. Market share of product applications; 2020
  3. Market surplus; 2020-2040
  4. Production process flowchart
  5. Market size; 2011-2040
  6. Existing capacity; 2011-2020
  7. Capacity distribution; 2020
  8. Geographic distribution of capacities; 2020
  9. Development of future capacity; 2011-2040
  10. Amount of output; 2011-2040
  11. Operating rates of production plants; 2011-2040
  12. Amount of consumption; 2011-2040
  13. Consumption share of domestic product; 2011-2040
  14. Exports of product; 2011-2020
  15. Imports of product; 2011-2020
  16. Historical trade balance; 2011-2020
  17. Future Market balance; 2021-2040
  18. Market output breakdown by alloy type; 2011-2040
  19. Market consumption breakdown by alloy type; 2011-2040
  20. Market balance breakdown by alloy type; 2011-2040
  21. Market output breakdown by product type; 2011-2040
  22. Market consumption breakdown by product type; 2011-2040
  23. Market balance breakdown by product type; 2011-2040
  24. Market consumption breakdown by application; 2011-2040
  25. Inventories of raw materials and products at producers factories; 2011-2020
  26. Consumers’ inventory of product; 2011-2020
  27. Traders’ inventory; 2011-2020
  28. Production forecast, according to raw materials and sales analysis; 2020-2040
  29. Market surplus; 2020-2040
  30. The share of end-user industries in the consumption; 2011 and 2020
  31. Changes in the end-consumption of extrusion products; 2020 vs 2040
  32. Applications in building construction industry; 2020
  33. Applications in infrastructure construction industry; 2020
  34. Applications in transportation manufacturing industry; 2020
  35. Applications in industrial equipment manufacturing industry; 2020
  36. Applications in durable goods manufacturing industry; 2020
  37. Applications in consumable goods manufacturing industry; 2020
  38. Capacity distribution structure of direct consumers; 2020
  39. Existing capacities of direct consumers in each province; 2020
  40. Suppliers of the export potential destination; 2020
  41. Historical exports to the export potential destination and future potential; 2016-2040
  42. Up-stream domestic supply; 2011-2020
  43. Raw materials domestic supply; 2011-2020
  44. Supply channels of producer plants
  45. Spot price of raw material in the market; 2011-2040
  46. Cash cost structure for production the product; 2020
  47. Production cost curve of the plants; 2020
  48. Gross value added of the industry; 2011-2020
  49. Generated new scrap; 2011-2020
  50. Sales channels
  51. Realized price of the product in the market; 2011-2040
  52. Potential demand of each province; 2020
  53. The main foreign suppliers to the market; 2011-2020
  54. FOB price vs domestic market; 2011-2040
  55. Map of global major importers > 20,000t; 2020
  56. Major foreign customers; 2011-2020
  57. Revenue structure of the producers; FY2020
  58. Sales income and gross profit margin of the producers; FY2011-2020
  59. Output and sales of the producers; FY2011-2020
  60. Revenue structure of the consumers; FY2020
  61. Sales income and gross profit margin of the consumers; FY2011-2020
  62. Output and sales of the consumers; FY2011-2020
  63. SWOT matrix for large-scale companies with favorable conditions
  64. Strategies positioning for large-scale companies with favorable conditions
  65. SWOT matrix for large-scale companies with unfavorable conditions
  66. Strategies positioning for large-scale companies with unfavorable conditions
  67. SWOT matrix for small enterprises with favorable conditions
  68. Strategies positioning for small enterprises with favorable conditions
  69. SWOT matrix for small enterprises with unfavorable conditions
  70. Strategies positioning for small enterprises with unfavorable conditions

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