16.5% share of the steel chain in the country’s non-oil exports

The 16th International Exhibition of Metallurgy, Steel, Casting, Machinery and Related Industries of Isfahan ( Metalex 2024 ) on Tuesday, the 6th of September this year, with the presence of the President of the Iranian Steel Manufacturers Association, the CEO and deputy directors of Mobarakeh Steel Company, a group of Mobarakeh Steel Group companies and also some officials. and steel industry activists started working at the permanent location of Isfahan International Exhibition.

Asr Ekhtaz: According to the report of Foolad reporter, Mohammad Yaser Tayebnia, in the opening ceremony of the 16th International Exhibition of Metallurgy, Steel, Foundry, Machinery and Related Industries of Isfahan ( Metalex 2024 ) , he stated: The share of 8 billion dollars in exports and foreign exchange of the steel chain last year was significant and By solving the existing challenges for this year and the coming years, this export can be easily improved.

Referring to the formation of a complete chain and even self-sufficiency in the country’s steel chain, he said: the 4.5% share of this industry in the national economy is a share that is higher than the world average.

The CEO of Mobarakeh Steel Company stated that the total export of the steel chain is 8 billion dollars, which is equivalent to 16.5% of the country’s non-oil exports, and added: “If we follow the policy of an oil-free economy, many parts of the realization of this goal will be aimed at the steel chain activists, who are far from It is not available.

He pointed to the good growth of the steel industry in all sectors of production, export and sales in recent years and said: If the economic growth of the country has been 4% or less or even negative in the last few years, the growth of the steel industry in all sectors is around 10%. has been But it should be noted that this growth has not been done in a balanced way and now we have to work for the stability of the industry and rather than expecting from others, the chain operators themselves should enter in this field.

Tayyabnia continued by stating that Mobarake steel as a model and leading industry in the steel chain and as a group that has invested from upstream to downstream of steel, has always been a leader in the field of reforms and has seriously followed the balance in the chain during the last three years. He added: It is safe to say that among energy-intensive industries, Mobarakeh Steel is the only complex that has worked at 100% capacity despite the electricity and gas outages. These conditions were due to targeted investments in order to create a balance, and this should also happen in the field of electricity, gas, water, transportation related infrastructure, supply chain, etc.

He stated: There should be reforms in the production structure. In some places, we need technology reforms and in some cases we need structural reforms, and if this does not happen, the created capacities will remain unused. It is up to all chain activists to enter into this matter seriously. Expectations from governance, especially in the field of laws, tariffs, optimizing and even revoking some licenses to balance the chain, are reasonable expectations and should be realized.

The CEO of Foulad Mobarake said that today we are in a state of stagnation at the international level and said: neighboring countries, even a country like Iraq, which in any case, in the field of steel and politics, we should have done better than them, as soon as Iran’s exports to Iraq is threatened, it imposes tariffs on our rebar exports to support domestic industries. Today, you know the conditions of economic recession in international markets. The situation in China is such that this country has to export a significant part of its steel production at a very low price, and this export is being done in international markets, and many countries have imposed anti-dumping tariffs to deal with this.

Mobarakeh Steel was the first non-oil exporter last year
On the sidelines of this exhibition, Tayyabnia also stated: Last year, Mobarakeh Steel was the country’s first non-oil exporter and brought good currency for the country. Today, if the necessary infrastructure is created in a balanced way along with the capacities, we have the ability to reach the sixth place in the world ranking.

Balanced development strategy along with maximum use of existing capacities
In response to a question about Foulad Mobarakeh’s strategy in the field of energy supply and balanced development, he said: Foulad Mobarakeh, in addition to adopting the strategy of maximum use of existing capacities, has adopted the approach of balanced development as another important strategy of the company since about three years ago. and, in this regard, has made targeted investments in the field of development of rail and road transport capacities; To the extent that today Foulad Mobarakeh has the capacity of 80 locomotives, nearly 5 thousand wagons and 500 trucks that it bought last year, as well as 600 trucks in the transportation companies of Foulad Mobarakeh.

Also, this company in the field of energy, as previously informed, by investing in the construction of a 914 megawatt class F power plant and putting two phases of this power plant into operation, as well as investing in the construction of a 600 megawatt solar power plant, which is the largest solar power plant in the country. In the next two months, its first phase will be opened with the help of God, it has taken effective measures in the field of sustainable energy supply needed by the company, and these are the events that helped the company and the country’s steel industry at the peak of unprecedented power outages and restrictions.

If these investments were not made in the field of energy in Mobarakeh steel, Mobarakeh steel, like many companies and factories in the country, would have stopped production, and the stoppage of production in Mobarakeh steel could have led to the stoppage of production in thousands of companies downstream of Mobarakeh steel, which would have affected Yemen. Foresight and investment in the mentioned areas did not happen.

He said: Let’s remember that by using the capacity of the power plants created in Mobarakeh steel in the conditions of energy restrictions, we were able to maintain half of the steelmaking capacity, and with the support of the Ministry of Safety, we were able to maintain the rolling stock in the circuit. In general, by storing and recording unique production records in the first two months of the year, we did not allow the market to face a vacuum of steel products and the end consumers to suffer, although due to these energy restrictions, the production capacity has decreased by half in the last two months.

It should be possible to export 25 million tons of steel products
Mohammad Yaser Tayebnia, CEO of Mobarakeh Steel, also stated: Today, the country’s steel consumption is 22 million tons, steel production is 32 million tons, and the installed capacity in the country is about 48 million tons. This is despite the fact that according to the plan based on which the production of 55 million tons of steel will be realized by 1404 horizon, the factories that are under construction and have more than 20-25% progress will achieve more than 65 million tons of steel production capacity. did The important point is that all these things are national investment and capacity and it should be used in the best way in line with national interests; But unfortunately, these capacities are not balanced; For example, in the field of energy, especially electricity, gas, water, transportation and export, we have not been able to create the necessary infrastructure in line with these capacities and move forward.

If we reach an economic growth of 8% and per capita consumption of 350 kg per person, the amount of steel consumption in the country will be 30 million tons, and therefore, we should create the possibility of exporting 20 to 25 million tons of steel products in the country. Unfortunately, in this field, we are facing problems and gaps both in terms of infrastructure and variety of products, and we definitely cannot have only 20 to 25 million tons of commercial products.

Today, even some neighboring countries have imposed export tariffs on some of our country’s export products, and some of them have made other investments in the field of steel production; Therefore, relying on the approach of exporting a few tens of millions of commercial and routine products is doomed to failure. Based on this, we should move towards the production of modern and value-added products by using current knowledge in the field of steel industry and invest more in completing the chain and variety of steel products.

Chairman of Iran Steel Manufacturers Association: Isfahan is the steel capital of Iran
According to Folad reporter, Bahram Sobhani also stated in the opening ceremony of the 16th Isfahan International Exhibition of Metallurgy, Steel, Casting, Machinery and Related Industries (Metalex2024): Isfahan is the steel capital of the country with 40% of Iran’s steel production. This province has the right to claim the title of the capital of the steel industry by having companies such as Mobarake steel, Zob Ahn, Kavir steel, Natanz steel, etc.

He stated that Iran’s steel producers have created a situation where we can claim that a country that was an importer of steel products until 8 years ago is now a global player in this field and the quality of its products shines brightly.

If energy restrictions are removed, we will definitely be among the top 6 or 7 countries in the world
The head of the Iranian Steel Producers Association emphasized: Despite the sanctions of the last few years and gas and electricity restrictions, which are increasing year by year and are a threat to the steel industry, we still have the 10th place among the world’s steel producers and among 2 billion tons of steel production. If the restrictions on gas and electricity are removed, especially this year when the power outages were annoying, we will definitely be among the top 6 or 7 countries in the world.

He continued: There was a time when there were only four state-owned steel production companies in the country, which supplied all their needs from abroad; But today, we see that in the steel industry, we no longer need to supply needs from abroad, and in this exhibition, we also see the improvement of domestic production compared to last year.

Sobhani stated that we do not lack anything for steel production and supply in the world markets, but there are some internal restrictions and problems, including currency problems, which cannot be denied, and added: In this exhibition, we are witnessing the display of machinery, equipment and even parts that Before, it was imported and today it is produced in the country, and the more this is developed, the less the dependency clauses will be.

The main issue is the market and if we cannot present ourselves in the markets, we will not succeed
He emphasized: It cannot be said that sanctions are ineffective; But the main issue is the market, and if we cannot present ourselves in the markets, we will not be successful, and despite the difficulties, we must proceed with indirect methods. However, in the meantime, the middlemen make a profit and we also have problems to return the currency; But if sanctions and the energy problem are resolved, we have a lot to say.

The head of the Iran Steel Manufacturers Association said: “We have a very good position in the field of technical knowledge in steel production, and there is not a week that we do not see the production of new products in the field of steel, products that have been imported before.”

Emphasizing that it is necessary to review the working process of steel producers with the current conditions, he stated: We have iron ore, raw materials and energy, and we have created a capacity of 55 million tons, and today we have to plan in terms of quality in production and Let’s invest for this.

The CEO of Isfahan Exhibitions Company stated: The presence of 150 steel companies in the 16th Metalex Exhibition
The CEO of Isfahan International Exhibitions Company announced the participation of 150 steel companies in the 16th Isfahan Metallurgy, Steel, Foundry, Machinery and Related Industries Exhibition (Metalex2024).

Ahmadreza Tahanian stated in the opening ceremony of this exhibition: This exhibition started in the space of 8 thousand square meters with the presence of 150 companies.
Stating that 70% of the participants were from production and the rest from services, he said: Also, 60% of the participants were from Isfahan province and 40% from other provinces.

The CEO of Isfahan Exhibitions Company, pointing to the strong presence of knowledge-based companies along with parent companies, including Mobarakeh Steel, in this exhibition said: This is a good event that we hope will be followed in all exhibitions.

According to Foolad reporter, Mobarakeh Foolad Group includes Mobarakeh Foolad companies, Tokafolad Investment Group, Atieh Foulad Naqshjahan Holding, Irisa Company, Chaharmahal and Bakhtiari Car Vehicle Company, Mobarakeh Foolad Venture Investment Fund, Mobarakeh Foolad Minerals Supply and Processing Holding, Fooladsang Company, Co. Foulad Mobarakeh Technical Engineering and Foulad Mobarakeh Sports Cultural Club of Sepahan hosted the visitors in the Amirkabir hall of this exhibition.

Creative narration in the field of environmental protection in Mobarakeh steel booth
In line with the sustainable and balanced development of the iron and steel industry, Mobarakeh Steel Company at the 16th Metalex International Exhibition, through a creative initiative and in the form of questions and answers from visitors on the hot seat, environmental culture in line with sustainable development, the strategy to achieve green steel and He explained the actions taken by the company in the field of environmental protection and shared it with the visitors of Foulad Mobarakeh booth.

Mohammadreza Mumtaz, director of purchasing consumables of Mobarake Steel Company: more than 95% of the consumables needed by Mobarakeh Steel are provided by domestic companies.

Thanks to God, in the field of consumables of Foulad Mobarakeh, we have now reached a situation where more than 95% of the consumables needed by Foulad Mobarakeh are provided by domestic companies. This success is due to the fact that during the last few years, actions, investments and a very good process have been carried out in Mobarakeh Steel in the field of localization. For example, in the field of refractories, before, less than 50% of refractories were provided inside the country, but today we have reached a situation where 97% of the refractories needed by the country’s steel industry are provided inside. This number is about 98% in the field of chemicals and oils and lubricants. It is important to mention that the remaining percentages are related to products whose technology is very special and under the monopoly of some countries, although for the localization of these items, various research teams consisting of Mubarakeh steel specialists, knowledge-based companies and manufacturers have been formed and it seems In the next 3 or 4 years, we will be able to achieve 100% localization in the field of consumables. The next move of Foulad Mubarakeh is planning to improve the quality of the mentioned items.

In the path of localization and this valuable process, Foulad Mobarakeh provides the necessary support by identifying knowledge-based companies and builders who have the capacity to do the work and know-how and financial investments in this field, and in various stages of construction and testing, with these companies. accompanies; As long as the goods meet the necessary standards in terms of quality and enter the industrialization phase. After that, Foulad Mobarakeh signs three to five-year contracts with the mentioned companies and gives them the assurance that if they improve quality and stable production, Foulad Mobarakeh will buy their goods.

Amir Hossein Karimdadi, CEO of Mobarakeh Steel Company: Fooladsang Company has made sustainable supply of raw materials needed by Mobarakeh Steel Company as its main mission.
Foulad Seng Company, as the largest producer of limestone in the country and supplier of raw materials to Foulad Mobarakeh Company, appeared in this exhibition. In fact, this company is one of the satellite companies of Foulad Mobarakeh Group, and recently, under the cover of Mobarakeh Foulad Minerals Supply and Processing Company, it has made the sustainable supply of raw materials needed by Mobarakeh Foulad its main mission. In this regard, we can mention phase 3 of lime and calcine furnaces. Also, in the field of hematite processing, with the possession of hematite mines, we are taking valuable measures to supply Mobarakeh Foolad iron ore. In this exhibition, a good opportunity was provided to get acquainted with the world’s latest technologies in our field of work. The biggest project in the hands of Foulad Seng Company is the construction of phase 3 of lime and dolomite furnaces, which has reached about 75% physical progress, and we hope to reach the cold test of these furnaces by the end of the year. Another project in progress of this company is the establishment of hematite mines in Kerman and Hormozgan provinces. With the implementation of these projects, we are trying to supply the iron ore needed by Mobarakeh steel and at the same time, we will also achieve the hematite processing technology.

Ahmadreza Sadr, Head of Public Relations of IMIDRO: Presentation of the achievements of Mobarake Steel should be done more than this
It seems that the presentation of Mobarake Steel’s achievements in various fields such as production, items, equipment and localized technologies and the actions taken by this company in the field of social responsibilities should be done more. The volume of activities carried out in Foulad Mobarakeh is very large and requires that these achievements be explained more. From here, I wish all my colleagues at Foulad Mobarakeh the best of luck. Fortunately, Foulad Mobarakeh provided good information regarding the time and manner of holding this exhibition. These actions by Foulad Mobarakeh’s public relations made the exhibition with maximum participation of companies and more prosperity.

Hossam Moghadam Ali, Vice President of Development Plans for Mines and Mineral Industries of Imidro: The implementation process of the Mobarake Steel Solar Power Plant is being followed up and supported by Imidro.
We are happy that the Metalex exhibition in Isfahan is held more fruitfully every year and with the maximum participation of major activists in this field. Definitely, one of our wishes is that this exhibition will be held internationally and we will witness the presence of large international companies and the holding of business meetings and the sale of our technical knowledge to the countries of the region who want to achieve the production capacity and knowledge of the steel industry. It is even possible to communicate with the countries of the African continent on an international scale and deal with them both in terms of technical knowledge and in terms of business in the field of steel industry.

It seems that one of the most valuable parts of this exhibition is related to the part that facilitates communication with knowledge-based companies. In such a process, large companies with their support of small knowledge-based companies provide the conditions for their presence and presentation of their capabilities. In the field of steel, we are faced with a value chain, a chain that consists of exploration, extraction and finally production of various steel products with different added value in different companies. Fortunately, in the whole chain, despite all the restrictions, sanctions and problems, we have achieved a significant growth of 6%.

Currently, there are 40 million tons of steel production capacity in the country; But the important point in this field is that we have to increase the productivity in the field of steel. Today, there are many weaknesses in the infrastructure of the steel chain, including exploration, logistics, supply of raw materials, machinery and exports, and it has become a set of challenges in this field. Fortunately, these issues were fully discussed in the specialized panel held in the Chamber of Commerce. It is definitely not possible to solve all these problems overnight; But it is necessary to find the solutions needed to solve the challenges raised in the held panels with the opinion of experts and considering more important priorities, plan for them and finally take action to solve them.

According to the measures taken by the mining and mineral industry companies as a large industrial family in recent years, today we can say that maybe the issue of water is no longer one of the main challenges of the steel industry, and even for industries located in desert areas, it is a cause for concern. is not Today, the main challenge is in the field of energy, which has caused heavy damage to the country’s steel industry and chain and cannot be ignored. Fortunately, one of the valuable actions of Fould Mobarakeh is the construction of a domestic power plant and the beginning of the process of building a solar power plant, and in this field, both in terms of technology and in terms of putting it into operation, this company has achieved valuable success and it deserves all the hard work of Mobarakeh Steel. Congratulations on this. I would like to point out that Imidro is also following up and supporting the construction process of Foulad Mobarakeh solar power plant.

We consider ourselves a family and follow all decisions in collaboration with companies and main activists of sectors, associations and collections that are considered as the main beneficiaries of the activity. In the field of gas, various working groups have been created so that we can build capacity for mining and mineral industries in this field as well. In the next steps, it is on the agenda to move towards the production of quality and value-added products, which Mobarake Steel has pioneered in recent years. Today, we see that many imported items and sheets, including stainless steel, have been localized in Mobarake steel. Fortunately, there is a very good interaction in the downstream areas and exploration as well as the exploitation of mines between the huge Mobarake steel complex and the Imidro family.

Alireza Vakili, CEO of Toanavar Asia Steel Company: Since this company joined Mobarakeh Steel Group, the production of this company has been growing.
Toanavar group is one of the tinplate production groups in Chaharmahal and Bakhtiari region, which has started its production process for about 15 years. The nominal capacity of this company is 150,000 tons per year, and fortunately, since this company joined Mobarakeh Steel Group, the production of this company has been growing.

One of the main challenges of this company is the excessive import, mainly from China, which enters the country with a tariff close to zero. This indiscriminate import hinders the production growth and development of companies like Tawanavar Asia. Here, we request the respected authorities to consider fair and efficient measures to prevent this import so that we can see the growth of production and development of domestic manufacturing companies in the future.