Sale of steel in Iran. Metal supplier company in the UAEIranian steel production has dropped 50% in the past three months, London-based Iran International reported on Saturday, citing sources at the Iranian Association of Steel Producers. The article says that the main problem for Tehran was a sharp decline in steel exports to Afghanistan and restrictions on the domestic market, which oblige domestic factories to first of all satisfy domestic demand, and make export supplies only from leftovers, depending on availability.
However, according to the World Steel Association Worldsteel, the economic situation in Iran is improving, the annual steel production increased by ten percent, and the growth in steelmaking exceeded China's by several percentage points.
Iran International believes that Iran may have deliberately misrepresented the information provided to Worldsteel for propaganda purposes. The World Association is not the only international group forced to rely on Iranian official data. The International Monetary Fund and the World Bank in particular are not present on the ground, and the Islamic Republic does not allow independent research groups to operate in the country.
Tehran wanted to demonstrate that Iran is withstanding the pressure of US sanctions and its economy is beginning to stabilize. But so far this year there are signs of a worsening economic situation: the rial has lost 15% in recent weeks, inflation is rising and, especially, food price inflation is reaching three times the level, provoking labor disputes and social unrest.
Russian and Chinese companies help IranRussia and China seem to be helping Iran's economy, but there hasn't been any significant Russian or Chinese investment in Iran since former US President Donald Trump pulled out of the Obama-era nuclear deal in 2018 and imposed tough sanctions on Tehran.
The only positive is that China continues to secretly buy some of Iran's oil, with most of the profits going to intermediaries rather than the government in Tehran.
Iran has been experiencing severe power shortages over the past nine months as its subsidized energy drives up household spending and illegal cryptocurrency mining combined with severe drought has made power plants unable to meet current demand.
According to Iran International, the power outages hit Iran's steel industry hard and led, among other things, to a reduction in the production of metal products.
Analysis of the metallurgy market in iran todayIn July, Hormozgan Steel CEO Ataolla Marufkhani told local media that the power outage had jeopardized the lives of steelworkers and cost steelmakers in Hormozgan province $ 18 million in lost profits.
The production cuts have led to a shortage of supply and a rise in steel prices in Iran in recent months.