Esfahan Steel (Esco) sold 2.5 million tonnes of steel in the Iranian year through 19 March 2016, of which 700,000t were exports, an increase of 100% on-year, Kallanish learns from Iran’s only blast furnace-based steelmaker. Shipments abroad went mainly to Europe and Arab Gulf countries.

In the current Iranian year, which runs through 20 March 2017, Esco aims to increase exports to 1mt. “Considering the recession in the domestic steel industry, we have considered exports as one of our main priorities; in view of the steel price increases in the world, now there is a good opportunity available to us,” says Esco chief executive Ahmad Sadeghi.

Esco’s new 400,000 tonnes/year rail mill, the first in the Middle East, is running trials, with commissioning expected in June. The firm has agreed to sell 100,000t of rail to Islamic Republic of Iran Railway Co. before the end of the current Iranian year. Despite the new mill’s capacity, Esco believes Iran’s domestic market only requires up to 150,000 t/y of rail at present.

Besides the local market, Esco says major rail infrastructure investment in the Middle East and North Africa, and Southeast Asia will also provide it with ample rail demand. Rail output will conform to the international EN13674 standard. Types of rail produced will include UIC60 for high-speed lines, UIC54 and S49 for urban metro systems and U33 for slower trains.

The Iranian steelmaker is also in talks to buy a stake in United Arab Emirates-based rebar and sections re-roller Star Steel (see Kallanish 7 March). Esco already provides billet to the Sharjah-based re-roller.