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:
- Maintaining Domestic Market Share: This involves ensuring that the company’s products meet local demands effectively.
- 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.
