According to Mr Mohammad Rahim Rasti MD of National Iranian Steel Company development of steel sector will be brought to a standstill if the Iranian government stops investing in steel projects. Mr Rasti told IRNA news agency that domestic investors are unable to invest IRR 3,000 billion to IRR 4,000 billion in this field. He underlined that development of steel sector is not an easy task and needs state support.

Turning to the implementation of eight steel projects in various provinces, Mr Rasti said that the projects are aimed at developing deprived areas. He said that five steel projects are being implemented in
1. Mianeh in East Azarbaijan province
2. Shadegan in Khuzestan province
3. Neiriz in Yazd province
4. Qaenat in South Khorasan province
5. Chaharmahal in Bakhtiari province.

The official added that tender offers for three other projects in Sabzevar in Khorasan Razavi province, Baft in Kerman province and Bafq in Yazd province would be received until October 19th 2007. The contracts will be signed within two to three weeks after receiving of offers.

Mr Rasti noted that steel production has not posted a significant growth in the first half of the current Iranian year to March 2008. He recalled that steel output grew by 3% to 4% during the six month period. The official said that since new steel projects have not gone into production cycle from last year, the rise in steel output had been meager. He predicted that Iran’s steel production would significantly increase with the implementation of Hormuzgan steel project next year. The scheme has the capacity to produce 1.5 million tons of steel per year.

Mr Rasti said the government halted exports since early this year to regulate the domestic market. He said “We should preserve our continuous presence in international markets otherwise we can not reenter the market easily as the domestic market is moving toward equilibrium in supply and demand.”