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Mobarakeh Steel poised to set new production record in the months to come-2019 China(Guangzhou) Int’l Laser Equipment and Sheet Metal Industry Exhibition
9/18/2018 钣金展-Laser Equipment, Sheet Metal Industry expo |
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A 12th edition of the International Metal, Steel, Raw Material, Metallurgy and Casting Exhibition was held in Mashhad (16-19 August 2018). During the event, local and foreign visitors came to the stall of Mobarakeh Steel Company to learn about its performance and achievements. According to the correspondent of Steel Newsletter, at the event, MSC Deputy Director for Sales and Marketing Mr Mahmoud Akbari, Manager of Planning and Market Research Gholamreza Taheri and Public Relations Manager Mohammad Nazemi Harandi talked about production-related developments at the steel giant and fielded questions posed by the managers and representatives of local and foreign firms.
On the sidelines of the exhibition, in an interview with the Iranian Labor News Agency, Mr Nazemi Harandi described the steel industry as one of the most fundamental industries of the country and said a look at the rankings of top steel producers shows that the most powerful global economies top that list. “China, Japan, South Korea, India, the US, the EU and Brazil, which are among the most advanced economies in the world, top the list of global steel producers.”
He further said last year Iran was the 13th largest producer of steel in the world. Mobarakeh Steel Company, a giant holding company with as many as 60 subsidiaries, accounts for half of the country’s steel production.
Mr Nazemi Harandi went on to said that MSC was founded when Iran was going through one of its roughest patches during the Sacred Defense to play a role in the development of the country. Today all managers and staff members of this giant are trying their best to help realize that goal. The company’s slogan: “An MSC as vast as Iran” has left an MSC mark throughout the country. “For instance, in the south, Hormozgan Steel Company, an MSC subsidiary in Bandar Abbas, is currently producing 1.5 million tons of steel and plans to increase its output.”
He said MSC has set up the country’s largest pelletizing plant (Sangan) in Khaf, Khorasan Razavi Province, adding Khaf, which is home to very honorable, people does have what it takes to develop further. That means measures should be taken to develop that area’s industry, mining and infrastructure, and MSC investment there is in line with that line of thinking.
He described as important the development in the Khaf region and said industrial development will result in balanced, multifaceted development in that important part of the country. The fact that the northeastern region neighbors Afghanistan means, on top of economic achievements, the development of Sangan will have positive security results.
In response to a question about the most serious challenges the steel industry is faced with, he said just like other industries, the steel sector faces a situation in which opportunities and challenges abound and the biggest challenge to the industry is infrastructural in nature.
He said steel production has developed, but the country’s infrastructure has failed to keep pace. Development of road, rail and sea transportation networks and energy supply and distribution infrastructure such as power plants, electricity transmission networks, natural gas production and distribution and water supply networks are the areas which can absorb investment.
Harandi went on to say all those involved in the steel industry are grappling with a number of business-related challenges. Unfortunately, economic conditions are not normal and the rise in the value of foreign currencies against the rial has given rise to new challenges.
He said the price tag of imported steel is twice as much as the price of the locally manufactured steel, adding in the past, the country used to import steel to meet part of its domestic need, but today steel imports are not economical and this puts pressure on local manufacturers to produce more and fill the vacuum created by declining imports.
Harandi further stated that “On the other hand, there is a wide gap between the price the government sets for steel and the market price; thus, part of the country’s wandering liquidity that used to be directed toward the forex, gold and automotive markets is now closing in on the steel market. As a result, demand for certain products on the Commodity Exchange has increased 3- or even 4-fold and this is a major problem.”
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