TEHRAN- Thanks to decrease in domestic demand, Iranian rebar exports will increase in 2018, Platts quoted Iranian industry sources.

The country's domestic production capacity is far outstripping its consumption while domestic rebar demand has decreased. The overcapacity has led into competition between steel mills i.e. Iranian rebar offers have been competitive. Accordingly, export volumes could surge in the 2018 calendar year, the report said.

Domestic rebar demand during the first eight months of the Iranian year, over (March 21-November 21), totaled 3.79 million metric tons, down 12 percent year on year, according to a report published on the Iranian Steel Producers' Association (ISPA).

"As a result of the deep recession in the domestic construction industry, the capacity of long steel is clearly more than the consumption at the moment and exports could be the only solution, at least for the next few months," a private re-roller said. 

He estimates Iran's nominal rebar capacity at around 20 million metric tons per year.

HJ/MA