SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
1
IRAN STEEL MARKET OVERVIEWIRAN STEEL MARKET OVERVIEWMr. Hadi Hami, Marketing Manager
www.mesteel.com
SBB STEEL MARKET MIDDLE EAST CONFERENCE
2-3 September 2007,
Shangri-La Hotel, Dubai, UAE
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
3
Iran Steel Market
• Production overview & outlook• Exports: Which mill exports what?• Imports: How volatile is the market? • Import sources diversify. Why China?• Middle East and Iran demand side issues• Iran pipes & tubes market perspective• Iran steel prices & market opportunities
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
4
• Iran Steel Production Overview - Outlook
– Semis production (per mill in 2004 – 2006)– Finished products production
(per mill in 2004 – 2006)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
5
Iran Steel Production (mt) (2004 - 2006)
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Semis Finished Products
Semis 8,989,640 9,574,291 9,928,081
Finished Products 9,432,800 10,594,844 11,054,015
2004 2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
6
Iran Semis Production (mt) per mill (2004 - 2006)
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000
2004
2005
2006
Khorasan Steel Co 317,012 410,674 460,274Iran Alloy Steel 150,389 188,337 187,726INSIG 105,273 115,681 125,150Khouzestan Steel Co 2,150,849 2,205,792 2,280,128Mobarakeh Steel Co 3,859,516 4,146,372 4,658,264Esfahan Steel Co 2,406,601 2,507,435 2,216,539
2004 2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
7
Iran Finished Products Production (mt) per mill ( 2004 - 2006)
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000
2004
2005
2006
Others 300,000 730,000 900,000Ahwaz Rolling & Pipes 293,658 320,218 224,437Kerman Steel Co 110,036 103,225 102,818Khorasan Steel Co 555,502 603,290 644,234Azarbaijan Steel Co 573,084 525,103 553,664Iran Alloy Steel 162,071 180,996 182,136Kavian Steel Co 465,329 480,451 439,097INSIG 692,652 852,665 1,056,076Mobarakeh Steel Co 3,853,548 4,222,644 4,609,021Esfahan Steel Co 2,426,920 2,576,252 2,342,532
2004 2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
8
Iran steel exports per product type (2005 – 2006)
• Export Figures per mill (2005 - 2006)• “Value” of steel exports per mill (2005 - 2006)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
9
Iran steel exports (mt) per mill (2005 - 2006)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Esfahan Steel Co (ESCO) 284,232 213,856Saba Complex 48,889 70,149Mobarakeh Steel Co (MSC) 1,052,881 1,087,701Khouzestan Steel Co (KSC) 927,237 531,274Iran National Steel (INSIG) 143,995 49,530Kavian steel 1,000 1,782Iran Alloy Steel 17,103 18,891Azarbaijan Steel 17,307 15,570Khorasan Steel Co 13,067 3,732Ahwaz Rolling & Pipes 32,713 37,487
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
10
Total Iran Steel Exports ( 2005 - 2006)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Expo
rted
Qua
ntity
(mt)
Total Iran Exports 2,538,424 2,029,972
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
11
M obarakeh Stee l Exports ( 2005 - 2006)
500
100,500
200,500
300,500
400,500
500,500
600,500
700,500
800,500
900,500
Expo
rted
Qua
ntity
(mt)
Hot Rolled Sheets 77,614 141,661
Hot Rolled Coils 928,861 894,089
Pickled Coils 3,537 31,101
Cold Rolled Coils 828 1,581
Coated Coils /Sheets 1,345 9,625
Slabs 40,696 9,644
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
12
Khuzestan Steel Exports ( 2005 - 2006)
0
100,000
200,000
300,000
400,000
500,000
600,000
Expo
rted
Qua
ntity
(mt)
Blooms 609,696 442,148
Billets 155,902 28,597
Slabs 161,639 60,529
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
13
ESCO Exports ( 2005-2006)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Expo
rted
Qua
ntity
(mt)
I-Beams 119,777 136,887
Rebars 98,462 76,969
Sections 65,993 0
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
14
Saba Complex Exports ( 2005 - 2006)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Expo
rted
Qua
ntity
(mt)
Hot Rolled Coils 48,889 70,149
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
15
INSIG Exports ( 2005 - 2006)
0
8,000
16,000
24,000
32,000
40,000
48,000
56,000
64,000
72,000
80,000
Expo
rted
Qua
ntity
(mt)
I-Beams 63,957 4,700
Rebars 76,497 42,581
Seamless Pipes 3,541 2,249
2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
16
Imports: How volatile is the market?
• Steel imports per product type (mt) (2004-2006)
• “Average Price” of steel imports per product type (2004-2006)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
17
Iran steel imports per product type (2004-2006)
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
Pig Iron
Ferro Alloys
Iron Powder
Iron Scrap
Alloy Scrap
Billets
Hot Rolled Coils
Cold Rolled Coils
Coated Coils/Sheets
Rebars
Sections & Beams
Wires
SS Billets
SS Coils/Sheets
SS Bars
SS Sections
SS Wires
Alloy Steel Billets
Alloy Steel Sheets
Alloy Steel Rebars
Alloy Steel Profiles
Alloy Steel Wires
(mt)
2004 2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
18
Iran "Average Price " of imported steel products per product type (2004-2006)
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Pig Iron
Ferro Alloys
Iron Powder
Iron Scrap
Alloy Scrap
Billets
Hot Rolled Coils
Cold Rolled Coils
Coated Coils/Sheets
Rebars
Sections & Beams
Wires
SS Billets
SS Coils/Sheets
SS Bars
SS Sections
SS Wires
Alloy Steel Billets
Alloy Steel Sheets
Alloy Steel Rebars
Alloy Steel Profiles
Alloy Steel Wires
($/mt)
2004 2005 2006
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
19
Import sources diversify, Why China?
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
20
Middle East long products imports, Ex-China per country (2006)
0
100
200
300
400
500
Vol (
'000
) mt
United Arab EmiratesIranSaudi ArabiaSyriaYemenKuwaitBahrainIsraelQatarJordanLebanonIraqOmanPalestine
United Arab Emirates 443
Iran 360
Saudi Arabia 230
Syria 202
Yemen 125
Kuwait 59
Vol ('000) Mtons
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
21
Middle East flat products imports, Ex-China per country (2006)
0
50
100
150
200
250
300
350
Vol (
'000
) mt
United Arab EmiratesSaudi ArabiaIranIsraelKuwaitSyriaJordanYemenQatarLebanonBahrainIraqOman
United Arab Emirates 290
Saudi Arabia 111
Iran 88
Israel 82
Kuwait 22
Syria 19
Vol ('000) Mtons
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
22
Middle East long products imports, Ex-China per country (Jan-Feb 2007)
0
100
200
300
400
500
600
700
Vol (
'000
) mt
IranSaudi ArabiaRep YemenUnited Arab EmiratesSyrianKuwaitJordanIsraelQatarOmanIraqLebanonPalestineBahrain
Iran 575
Saudi Arabia 73
Rep Yemen 69
United Arab Emirates 65
Syrian 37
Kuwait 16
Vol ('000) Mtons
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
23
Middle East flat products imports, Ex- China per country (Jan - Feb 2007)
0
10
20
30
40
50
Vol
('00
0) m
t
United Arab EmiratesSaudi ArabiaIsraelIranKuwaitJordanOmanLebanonSyrianQatarBahrainIraqRep Yemen
United Arab Emirates 46
Saudi Arabia 23
Israel 22
Iran 7
Kuwait 6
Jordan 5
Vol ('000) Mtons
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
24
Iran Seamless Pipe Producer
Iran National Steel Industrial Group (INSIG) (The only local player)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
25
Iran Seamless Pipes Production (INSIG Production)(mt) (2004 -2006)
20042005
2006
3789836878
30315
32003541
2249
Year Production Export
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
26
Iran Total Seamless Pipes Production (mt) (INSIG) (Q1+Q2 2007)
15,960
7,980
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
(Q1+ Q2 2006) (Q1+Q2 2007)
Production
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
27
Seamless pipe demand increase
- Domestic Consumption Increase- Shortage of Raw Materials
- Import difficulties- More Government Restrictions
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
28
Iran Carbon Steel Prices
• 2006
• 2007
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
29
Iran Steel Semi Finished Products Prices ( 2006 )
0
100
200
300
400
500
600
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/m
tt)
Billets Slabs
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
30
Iran Steel Semi Finished Products Prices - 2007
0
100
200
300
400
500
600
700
Jan Feb Mar Apr May June July Aug Sep
USD
/ m
t
Billets Slabs
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
31
Iran Steel Rebar Prices ( 2006 )
0
100
200
300
400
500
600
700
800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/m
tt)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
32
Iran Steel Rebars Prices - 2007
600
620
640
660
680
700
720
740
Jan Feb Mar Apr May June July Aug Sep
USD
/ mt
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
33
Iran Steel Beam Prices ( 2006 )
0
100
200
300
400
500
600
700
800
900
1000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/m
tt)
Beams ( 140mm - 180 mm ) Beams ( 200mm - 300 mm )
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
34
Iran Steel Beams Prices - 2007
0
200
400
600
800
1,000
1,200
Jan Feb Mar Apr May June July Aug Sep
USD
/ m
t
Beams ( 140mm - 200 mm ) Beams ( 220mm - 300 mm )
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
35
Iran Steel Hot Rolled Coil Prices (2006)
0
100
200
300
400
500
600
700
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/m
t)
(2mm - 2.5mm) (2.5mm - 4mm) (4mm - 8mm) (8mm -12.5mm)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
36
Iran Steel Hot Rolled Coils Prices - 2007
0
100
200
300
400
500
600
700
800
Hot Rolled Coils(2mm - 2.5mm)
Hot Rolled Coils(2.5mm - 4mm)
Hot Rolled Coils(4mm - 8mm)
Hot Rolled Coils(8mm - 12.5mm)
USD
/ m
t
Jan Feb Mar Apr May June July Aug Sep
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
37
Iran Steel Cold Rolled Coil Prices ( 2006 )
0
100
200
300
400
500
600
700
800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/m
t)
Cold Rolled Coils (1mm - 1.5mm)
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
38
Iran Steel Cold Rolled Coils Prices (1mm - 1.5mm) - 2007
0
100
200
300
400
500
600
700
800
Jan Feb Mar Apr May June July Aug Sep
USD
/ mt
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
39
Iran Coated Steel Coil Prices ( 2006 )
0
100
200
300
400
500
600
700
800
900
1000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/m
t)
Gi Coils (CR Base) Tinplate (0.3 mm )
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
40
Iran Coated Steel Coils - 2007
750
800
850
900
950
1,000
Jan Feb Mar Apr May June July Aug Sep
USD
/ m
t
Gi Coils (CR Base) Tinplate (0.3 mm )
SBB Steel Markets - Middle East Steel Conference, 2-3 September 2007, Shangri-La Hotel , Dubai, UAE © 2007 MEsteel.com - All Rights Reserved.
41
Thanks for your attentionFor questions regarding this presentation, the Iranian or Middle East steel market, contact us at our stand here, or
Email : [email protected]
WWW.MESTEEL.COM
Linking Steel Sellers and Buyers in the Middle east