Mobarakeh Steel (MSC) exported 1.79 million tonnes of steel in the Iranian year through 19 March 2016, surpassing its target of 1.5mt, Kallanish learns from Iran’s largest steelmaker.

The majority, or 65%, of shipments abroad went to Europe, while the balance was destined for the Middle East, Far East and Africa. New markets appeared among Mobarakeh’s export destinations, such as Algeria, Morocco, Poland and Turkmenistan. Over 60% of export sales went directly to end-users. Besides hot and cold rolled coil, and hot-dip galvanized coil, the firm also exported merchant slab.

MSC has pushed for increased exports partly because weak demand and competition from imports has hampered its sales in the domestic market. Last December the firm commissioned a 200,000 tonnes/year rolling mill producing 800-1,500mm wide and 2-10mm thick chequer plate, half of whose output is allocated for export.

MSC chairman Bahram Sobhani said last month steelmakers based in the Persian Gulf Special Economic Zone (PGSEZ) should consolidate to cut their production costs and increase export competitiveness. Merchant slab producer Hormozgan Steel and compact strip mill Saba Steel, both MSC subsidiaries, operate in PGSEZ.

Separately, MSC posted record annual iron ore pellet output of 7.47mt in the last Iranian year, an increase of over 220,000t on the previous year. The firm is in the process of building a new 5m t/y pelletising plant.