Khouzestan Steel (KSC) plans to increase billet production 5% on-year in the next Iranian year to 3.6 million tonnes, Iran’s second-largest steelmaker says in a report seen by Kallanish. The next Iranian year runs through 20 March 2017.

In the Iranian year through 19 March 2016 KSC foresees billet production reaching 3.43mt after recording 3.15mt of output in the eleven months through 19 February.

Iron ore pellet output, meanwhile, is expected to reach a record 6.35mt in the current Iranian year, up 4% on-year, and is seen remaining flat next year. Direct reduced iron output is forecast to reach 3.62mt this year, up 5% on-year, inching up to 3.65mt the following year.

KSC’s billet exports in the current Iranian year are seen reaching 1.36mt, up 13% on forecasts twelve months ago.

KSC possesses three electric arc furnaces with a combined crude steel production capacity of 3.7 million tonnes/year. Output in 2015 surpassed 3.45mt. The firm is carrying out a project to increase crude steel capacity to 5m t/y by 2017, and hike its iron ore pelletising and DRI capacities to 7.2m t/y and 5.8m t/y respectively.

Last calendar-year KSC surpassed 1mt of semi product exports for the first year in its history. The firm’s previous highest export figure was recorded in 2005 at 940,000t.

In 2015 Saudi Arabia was KSC’s main export customer, taking in 241,000t of semis, followed by Jordan with 235,000t and United Arab Emirates with 170,000t. Oman (122,000t) and Thailand (71,000t) are fourth and fifth.