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Iran's Esfahan Steel all set to export to Qatar, returns to EU market

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Paaske Strickland
Iran's prime building steel manufacturer Esfahan Steel Co, or Esco, prepares to export long steel items to Qatar, the firm's replacement managing supervisor to buy as well as advertising Ehsan Dashtianeh told S&P Global Platts Monday.

"Qatar needs my home page of steel items for its significant growth plans which were being partially provided from the UAE and also Saudi Arabia," Dashtianeh claimed.

"However, importing from these countries is now banned ... Esco is ready to supply Qatar's demands for building and construction steel products consisting of heavy areas if the [diplomatic] situation continues," he stated.

Esco has likewise recently went back to the EU market after a hiatus of about ten years, with a 2,000-mt test delivery of I-beams in 2 sizes: 12 and also 18 meters, Dashtianeh claimed.

"Compared to our complete exports, it is a really tiny trial delivery to test the market however we will certainly increase our exports to Europe in future," he added.

Esco also prepares to begin regular exports of pig iron to Europe.

"Residential need is our priority. Nonetheless, we expect to export some 40% of the business's result which will be about 1 million mt in the existing Iranian year [to March 20, 2018]," he stated.

Esco exported some 700,000 mt of various items in the previous Iranian year ended March 20, 2017.

Esco is the only Iranian steel producer to make use of blast furnaces, of which it has three. One, with an ability of 1 million mt/year, is idle because of reduced need in the residential market.

The firm nonetheless, introduced in April that it planned to reactivate production at the idled blast furnace within 2 months.

Esco launched a new rail as well as heavy sections mill in 2016 in order to satisfy residential need as well as also increased its casting capacity to 3.6 million mt/year.

The firm is presently not a vendor of steel items to Qatar. A section of Qatar's requirement of cold-rolled as well as hot-rolled flat steel items is satisfied by Mobarakeh Steel Business, Iran's biggest steel producer.
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