According to Chilan, according to recent meetings of the Specialized Committee on the Regulation of the Steel Market for the Management of Sponge Iron Exports and to regulate the domestic market for this raw material, Sponge Iron activists gathered this morning to discuss the issue of steel producers.

Asadullah Farshad, member of the board of directors of the Steel Manufacturers Association, referred to the recent development of the sponge iron mining sector, saying: “Fortunately this year, despite the sanctions problems, we have had significant success in the mining industry and production has also improved. It is expected that this year around 2 million tonnes of sponge iron will be produced, with more than 5% allocated to steelmakers and new steelmaking sectors, especially inductors, as well.

Farshad pointed to the maximum production of ingots by the Indians, adding that most sponge iron mills have been set up to provide steel for their complex while developing induction smelting plants regardless of the supply of raw materials, rather than Iran. These induction furnaces are expected to produce over 4 million tons of ingots in Iran this year.

A member of the board of the Steel Manufacturers Association emphasized that it is not easy to use scrap metal in the country. It was predicted that most induction furnaces would use scrap, but given the limited resources of scrap metal in the country, access to this material was easy. It was not possible, and activists of induction melting as well as sponge iron in their letters to the community called for measures to be taken to address the problem so that it would have fewer problems next year.

He stated that the issue of supplying part of the steel makers with induction furnace was discussed at today’s meeting. He said: According to the available information, about 2% of the induction furnace charge is sponge iron and therefore these manufacturers, about two Millions of tons a year require sponge iron. Accordingly, the association was to collect and process complete information from induction furnace manufacturers to plan and act on their short and long term needs.

Farshad continued: It is expected that by March when the Year 6 sponge iron producers will be finalized, they will include a quota for their induction furnaces in accordance with the geographical location of the plant.

A member of the board of the Steel Manufacturers Association pointed to two serious problems with Sponge iron producers, stating: The first problem that the Sponge Iron producers also emphasized at this meeting was a serious shortage of pellets, which we hope will be completed by next year; To make up for this shortage. But the second point that was important to the sponge iron producers, who emphasized the need for a currency from their own export, was the need to provide the spare parts and equipment needed for their development plans.

Farshad said that we had less than one and a half percent of the total production of sponge iron in year 2, adding that it is anticipated that sponge iron producers will be able to increase this capacity to more than 2% under current development plans. Given the government’s policies to promote non-oil exports, the potential for the steel value chain to be taken has the potential to go hand in hand with the emphasis on domestic supply priority in export development.