April 6, 2022

Compared to 2021, raw steel production in Iran was up 11.8% for the first two months of 2022, with a two-month total of 5.33 million mt, according to the World Steel Association (WSA).  Iran had the largest expansion rate of any nation surveyed by the WSA, and currently ranks tenth in global steel production. Iran is normally a large steel exporter, shipping mainly to Southeast Asia and the Middle East, according to the US Department of Commerce. At 297.7 million mt, year-over-year global steel production was down 5.5% during the first two months of 2022.

Consumers who are concerned about their HRC steel input costs should consider financial swaps or purchasing call options. Such positions are standard for consumer hedging, but they can result in opportunity costs or cash costs if metal prices decline. Please contact AEGIS for specific strategies that fit your operations. (4/6/22)

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