Steelmakers from the Islamic Republic should develop a strategy for working in the spot steel market, taking into account the stronger decarbonisation efforts and increasing demand for gas around the globe. Given some issues with gas supply in Iran, especially due to its underdeveloped infrastructure, local mills have to prepare for higher competition with other producers that are more likely to secure the hydrocarbon requirement.
\nThe Iranian steel industry may face new challenges in the long term amid the tightening competition with producers in South Asia and GCC that are about to secure sustainable gas supply as important hydrocarbon transportation routes are being developed. These are the Turkmenistan \u2013 Afghanistan \u2013 Pakistan \u2013 India Natural Gas Pipeline (TAPI) and Dolphin Gas Pipeline, which connects Qatar, the UAE, and Oman, according to the market analyst and the CEO of Jame Tejarat Company Keyvan Jafari Tehrani. \u201cIn a few years, the neighbouring countries will enjoy gas from the two pipelines. If we don\u2019t plan properly to do marketing and find customers in the international market, we will face a problem,\u201d a source told Metal Expert.
\nAccording to Vision 2025, Iran is expected to set up 55 million t of steel capacity, while export will exceed 12-15 million t compared to the current 9 million t. In the meantime, Oman plans to expand its production potential to 20-25 million t of steel under Vision 2030. India targets 300 million t of steel capacity by 2030-2031 and may significantly strengthen its position in the global market. Pakistan is also studying the possibilities of developing its DRI capacities. Most of the expansions will require gas or other energy sources that may be secured owing to mentioned gas projects. In such conditions, the steel suppliers in Iran will appear in a more equal position and will be forced to struggle for sales destinations.
\nThe future strategy can still be elaborated as both pipeline projects require time. Moreover, while the TAPI project is already underway, the second pipeline receives planned financing and should pass several important execution stages, Metal Expert learnt. In the meantime, pipeline construction will benefit regional and international suppliers, bringing them new orders.<\/p>\n","protected":false},"excerpt":{"rendered":"
Steelmakers from the Islamic Republic should develop a strategy for working in the spot steel market, taking into account the stronger decarbonisation efforts and increasing demand for gas around the globe. Given some issues with gas supply in Iran, especially due to its underdeveloped infrastructure, local mills have to prepare for higher competition with other […]<\/p>\n","protected":false},"author":1,"featured_media":2965,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"acf":[],"yoast_head":"\n