Iran's main heavy plate producer, Khuzestan Oxin Steel Co, is planning to increase its exports during the current Iranian year (started March 21) to around 10% of its overall output, Head of Marketing and Market Research Mohammad Khazami told S&P Global Platts Monday.
Oxin's output was around 650,000 mt in the last Iranian year; some 30,000 mt of this was exported, mainly to Germany, Italy, Belgium and the Netherlands.
"Since receiving positive feedback from our European clients, our exports are expected to reach around 75,000 mt this year," Khazami said.
He said that Oxin offers some products not made by Iran's other main flats producer, Mobarakeh Steel Co. "Oxin is the only Iranian producer of heavy wide steel plate and is able to produce it in widths of 1,100-4,500 millimeters with a thickness of 8-150 mm, as used by shipbuilders, large diameter pipe makers and for special purposes in the oil and gas industries."
Currently, some 80% of its required slab is sourced from domestic producers MSC, KSC and Hosco, with a further 20% (used for API grade plate) being imported, he said, adding that the company is planning a modern, steel plant which is now at the stage of obtaining environmental permits.
He added: "We are also able to supply the materials needed by new foreign investment projects in Iran's oil and gas industry. Oxin's production is based on European and American standards and the company has been audited by companies affiliated with the country's petroleum ministry, which is in charge of development projects. Therefore, we are able to supply the heavy plate which foreign companies will need for their projects in Iran."
As a result of the largest Iranian steel producer, MSC's policy of focusing on requirements for the country's downstream manufacturers and slowdown in exports, Oxin could become the most important flats exporter in Iran.
