At the expert committee on “Balancing the Flat Steel Product Chain Based on Market Demand” held at the Pavilion of Mobarakeh Steel Group, Mr. Majid Fakhri, Sales and Product Delivery Planning Manager of Mobarakeh Steel Group, said: “Iran Recognizing its vital role in economic and industrial growth, Mobarake Steel has implemented a targeted strategy aimed at simultaneously increasing exports of finished products and meeting the evolving needs of the domestic industry.Over the past decade, consumption of flat steel has increased. It fluctuates between 8.5 million tons and 9.5 million tons. ”
Fahari added that demand is expected to reach 14.6 million tons over the next 10 years as industries such as automobiles, home appliances, fluid power transmission and construction continue to develop. “Given the expansion of steelmaking capacity across the country, the market is likely to face oversupply, especially in the hot rolled products sector,” he noted.
Two pillars: maintaining domestic market share and expanding exports
To ensure production stability and make full use of its capabilities, Mobarake Steel pursues two core strategies: maintaining domestic market share and expanding exports.
“Taking into account the challenges of the export market and the need to expand into new regions, a dedicated plan was launched this year to increase exports of finished products annually in line with the expansion of production capacity,” Fahri explained.
Strategic focus on automotive and consumer electronics sectors
He emphasized that Mobarakeh Steel is strategically focused on meeting the needs of Iran’s automotive and consumer electronics industries.
“According to our ongoing projects and development roadmap, these two divisions offer the highest growth potential and value creation within the downstream steel chain. The Group’s future direction is therefore aligned with supporting their progress,” he said.
Progress towards production of electrical steel sheets
Mr. Fakhali pointed out that one of Iran’s major challenges in recent years is the imbalance in electricity supply.
“With a forward-looking strategy, Mobarake Steel Group has directed its development plans towards the production of electrical steel sheets, a product that can transform the nation’s energy efficiency and productivity,” he explained.
Currently, domestic consumption of electrical steel sheets is approximately 50,000 tons per year, but the potential market capacity is estimated at 200,000 tons.
He said many of Iran’s power grid transformers are aging and in need of updating, adding that the adoption of highly efficient electric motors in household appliances and industrial equipment could significantly reduce the country’s energy consumption.
“Based on Mobarake Steel’s technology assessment, in the area of evaporative coolers alone, the use of electrical steel sheets in new motor designs has the potential to save approximately 2,000 megawatts of energy, which is equivalent to the capacity of a large power plant,” Fakari said.
Further research suggests that widespread use of this technology across a variety of industries could save up to 3,000 megawatts of energy and reduce power plant construction costs by billions of dollars.
“This achievement is not just an industrial project, but a national initiative aimed at optimizing energy consumption, improving production standards and increasing self-sufficiency,” he stressed.
By developing the production of electrical steel sheets, Mobarakeh Steel is effectively relieving pressure on the country’s power grid and creating sustainable added value for Iranian industry.
Developing a greener, more efficient industrial future
Fakhari concluded: “Through technological advances, localization of technical knowledge and large-scale production of this strategic product, Mobarakeh Steel is on its way to becoming the region’s leading producer of electrical steel. This direction will not only foster economic growth but also lay the foundation for a greener, more efficient and future-oriented industrial landscape in Iran.”