Boosting Exports: Fueling Domestic Industry Growth and Meeting Market Demands

Boosting Exports: Fueling Domestic Industry Growth and Meeting Market Demands

In a recent discussion at the Mobarakeh Steel Group Pavilion, Majid Fakhari, the Sales and Product Delivery Planning Manager, shed light on the vital role of flat steel in Iran’s economy and industry. He emphasized that Mobarakeh Steel is committed to enhancing both domestic production and exports, reflecting the growing market demand for flat steel products.

During the specialized panel titled “Balancing the Flat Steel Product Chain Based on Market Demand,” Fakhari stated, “Recognizing its pivotal role in Iran’s economic and industrial growth, Mobarakeh Steel has implemented a targeted strategy that simultaneously aims to expand exports of finished products and meet the evolving needs of domestic industries. Over the past decade, flat steel consumption has fluctuated between 8.5 and 9.5 million tons.”

Fakhari further elaborated on the anticipated growth in demand, particularly in sectors such as:

  • Automotive
  • Home Appliances
  • Fluid Transmission
  • Construction

He forecasted that demand for flat steel is expected to soar to 14.6 million tons over the next decade. “Given the nationwide expansion of steelmaking capacities, the market will likely face a supply surplus—particularly in the hot-rolled product segment,” he noted.

Core Strategies for Market Stability

To maintain production stability and optimize capacity utilization, Mobarakeh Steel is pursuing two main strategies:

  1. Maintaining Domestic Market Share: This involves ensuring that the company’s products meet local demands effectively.
  2. Expanding Exports: Mobarakeh Steel is actively working on a plan to boost exports of finished products annually, adapting to the evolving market landscape.

“Considering the challenges of export markets and the need to penetrate new regions, a dedicated plan has been launched this year to increase the export of finished products annually in line with growing capacities,” Fakhari explained.

Strategic Focus on Key Industries

Fakhari highlighted the company’s strategic focus on the automotive and home appliance sectors, stating that:

“According to our ongoing projects and development roadmap, these two sectors offer the highest growth potential and value creation within the downstream steel chain. The group’s future direction is therefore aligned with supporting their advancement,” he said.

Innovations in Electrical Steel Production

Another significant challenge facing Iran has been the imbalance in electricity supply. Fakhari pointed out that Mobarakeh Steel has embraced a forward-looking strategy directed towards the production of electrical steel, which is essential for enhancing national energy efficiency and productivity.

Currently, domestic consumption of electrical steel sheets stands at around 50,000 tons per year, while potential market capacity is estimated at 200,000 tons.

Fakhari emphasized the need for renewal in Iran’s aging power grid transformers and the adoption of high-efficiency electric motors in household appliances and industrial equipment, which could lead to significant reductions in national energy consumption. He remarked, “Based on Mobarakeh Steel’s technical assessments, in the field of evaporative coolers alone, using electrical steel sheets in new motor designs could save approximately 2,000 megawatts of energy—equivalent to the capacity of a large power plant.”

Further studies suggest that widespread implementation of this technology across various industries could yield up to 3,000 megawatts in energy savings, translating into billions of dollars in reduced power plant construction costs. “This achievement is not merely an industrial project but a national initiative aimed at optimizing energy consumption, improving production standards, and strengthening self-sufficiency,” he emphasized.

By advancing the production of electrical steel sheets, Mobarakeh Steel is not only alleviating pressure on the national power grid but also generating sustainable added value for Iran’s industry.

Commitment to a Sustainable Future

Fakhari concluded with optimism about the company’s future, stating, “Through technological advancement, localization of technical knowledge, and large-scale production of this strategic product, Mobarakeh Steel is on the path to becoming the leading producer of electrical steel in the region. This direction not only drives economic growth but also lays the foundation for a greener, more efficient, and future-oriented industrial landscape in Iran.”

Mobarakeh Steel’s commitment to innovation and sustainability is setting a precedent for the steel industry in Iran, showcasing the potential for growth and environmental responsibility intertwined.

Similar Posts

  • Tehran Set to Welcome the 3rd Caspian Economic Forum: A Hub for Economic Growth and Collaboration!

    The Caspian Economic Forum aims to enhance economic, trade, scientific, and technological cooperation among Caspian littoral states, addressing key issues in healthcare, energy, finance, tourism, and logistics. Discussions will focus on boosting trade, investment cooperation, transportation, environmental sustainability, energy collaboration, and innovation. The second day is significant as prime ministers are expected to sign a declaration to strengthen cooperation. Rooted in a 2018 agreement, the forum promotes continuous collaboration, with Iran hosting the next edition in 2024. The initiative seeks to establish frameworks for trade, attract investment, ensure energy security, and foster technological advancements, paving the way for regional stability and growth.

  • Rosatom Engages in Talks with Iran for New Nuclear Power Plant Development

    Russian officials reaffirmed their commitment to collaborating with Iran on nuclear projects, with Rosatom’s head, Likhachev, highlighting ongoing negotiations for new energy sites. This partnership aims to enhance Iran’s energy production capabilities, focusing on both traditional and small-scale nuclear generation to meet diverse energy needs. Project timelines will depend on directives from Iran’s government. The collaboration could bolster Iran’s energy independence and economic growth while integrating it into the global nuclear community. As global energy demands rise, this partnership exemplifies a trend toward sustainable nuclear energy solutions, with potential implications for regional energy dynamics and future international collaborations.

  • Iran Faces Water Crisis as Afghanistan Unveils New Dam Project

    The completion of the Pashdan dam in Afghanistan has raised concerns in Iran regarding water supply management, particularly for Khorasan Razavi, where over two million residents depend on the Harirud River. Iran, facing chronic water shortages, fears the dam will worsen existing challenges. Water diplomacy expert Rasoul Mirayini emphasizes the need to secure Iranian water rights. While Afghanistan argues the dam is essential for agriculture, it threatens water resources for Iran and Turkmenistan. The ongoing water dispute reflects broader regional issues of climate change and historical agreements, necessitating careful negotiation for sustainable water management between the two nations.

  • Iran’s Central Bank Shatters Records with Soaring Gold Auction Sales!

    The Central Bank of Iran (CBI) has achieved significant success in its recent gold auction, where 1.257 metric tons of gold bars were sold, exceeding the previous record of 567 kilograms. This auction generated around 110 trillion rials (approximately $120 million) and reflects Iran’s strategy to bolster gold reserves amid economic challenges and US sanctions. Since January, the CBI has sold 17.845 metric tons of gold, valued at over 1,000 trillion rials. Additionally, nearly one million gold coins have been sold in recent auctions, signaling strong investor interest as Iran seeks to stabilize its economy and currency.

  • Iran-China Oil Trade Soars as Traders Find Ways Around US Sanctions

    In February, Iranian crude oil exports to China surged to approximately 1.74 million barrels per day, an 86% increase from January and the highest level since October, according to Kpler Ltd. Factors contributing to this rebound include increased ship-to-ship transfers and the use of alternative receiving terminals, which help bypass traditional routes amid US sanctions. China remains the largest consumer of Iranian oil, with independent refiners, known as “teapots,” playing a key role in absorbing these imports. Industry experts are monitoring the evolving dynamics of this trade, influenced by geopolitical factors and regulatory pressures, with cautious optimism for future exports.

  • Petrochemical Production Set to Surge: Output Capacity to Reach 105 Million Tons by Year-End!

    The CEO of Iran’s National Petrochemical Company (NPC) announced plans to increase the nominal production capacity to 105 million tons by March 2026, enhancing Iran’s global petrochemical market position. This ambitious growth strategy aims to stimulate economic growth, create jobs, and diversify product offerings. The NPC is also emphasizing sustainability and innovation, incorporating advanced technologies to improve production processes and reduce environmental impacts. The initiative seeks to attract domestic and foreign investment through favorable policies, fostering strategic international partnerships. Successful implementation of these goals could significantly strengthen Iran’s economic resilience and competitiveness in global markets.