Iran’s Mobarakeh Steel Plans Output Boost From Economic Growth

Iran’s Mobarakeh Steel Co. will increase production more than 25 percent next year to meet growing domestic demand after the easing of international sanctions on the Persian Gulf country’s economy.

Steel output will increase by 2 million metric tons next year, from 7.5 million tons in 2016, Bahram Sobhani, managing director of Mobarakeh Steel, said in an interview in Dubai Tuesday. Exports will be unchanged at 1.5 million tons as the higher production will all go to meet domestic demand, he said.

“Everything is booming in Iran,” Sobhani said. “Day by day I see the demand is going up.”

Faster economic growth means more steel will be needed to make everything from cars to home appliances and buildings. Iran’s per capita steel consumption could grow to exceed 300 kilograms (662 pounds) in the next few years from about 235 kilograms today, Sobhani said. The country’s steel demand will be about 19 million tons this year, and the government is aming for production capacity to increase to 55 million tons by 2025, he said.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE