News ID : 3882
Publish Date : 15 January 2020 - 09:00
While America is putting new sanctions against steel industry, manufactures of steel industry said that the won’t have any problem to supply the need of auto industry even after production raise.
Khodorcar - The US has announced new sanctions against Iran on January 2, while the former Iranian steel maker Mobarak Steel had already been sanctioned, and in a new statement referring to the company, sanctions were imposed on other companies. Saba Steel, Hormozgan Steel, Esfahan Steel, Kaveh South Steel, Iran Alloy Steel, Golgohar Industrial & Mining Company, Chadermo Industrial & Mining Company, Arfa Iron & Steel Co., Iran Aluminum Company, Al Mahdi Aluminum Company, National Copper Company of Iran, Khuzestan Steel Company Ghadir Iron and Steel Company has announced.

However, government officials as well as activists in the area consider the sanctions effective for steel companies and believe they can easily meet the needs of the automotive industry while preventing currency outflows.

"In the same period, production of 2 million and 200 thousand cars was projected for this year. Due to the growing problems, this year's car production will not reach more than 750 thousand units, which means reduction of car production by one third. forecasted.” Reza Shahrestani, member of steel manufacturers association told khodrocar reporter. 

"However, steel companies such as Mobarakeh Steel have also been on the rise, and in light of these sanctions, it seems likely that there will be no problem with the supply of automobile sheets despite the metal boycott.” He added.

"Planning to increase steel sheet production as well as reduce automobile production has eliminated concerns about sanctions, as many companies now have a lot of cold rolling, which seems likely to happen in the coming years.” He said. 

"Currently, more than two million tons of raw materials and slabs are exported, a surplus to domestic consumption, which will increase the export of slabs to steel companies in the hot and cold rolling stocks to meet the needs of the auto industry.” He said. 

"The sanctions have prevented foreign currency from being exported through internalization, while there is no need for high costs and technology, so new sanctions could be considered a blessing in the field of basic metals.” He mentioned. 

Plans for steel companies to increase production on the one hand and surplus raw materials on the other hand alleviate concerns about metal sanctions and even steel activists assure that there will be no problem if automobile production increases.
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