Iran is one of the major importers of graphite electrodes.
Behrooz Rahimi, the Technical Engineering Manager of Shokri Industrial Group (Jahan Foulad Gharb and Bisotoun Steel Company).
The lack of control over imports in the steel industry and its related subgroups has largely disrupted the production and distribution sectors, ultimately negatively impacting the profitability of steel production industries. Dependence on imports, in situations where domestic capacity has the ability to produce similar products, weakens local producers. On the other hand, supporting domestic production means contributing to the growth of local industries and reducing the outflow of foreign currency from the country.
It is natural that the weak consumption, production, and growth in recent years indicate a stagnation in the steel industry, downstream industries, and a reduction in related projects, with imports playing a significant role in this matter.
A quick look at the production levels and steel products, as well as imports in the past year, easily reveals that with proper management and planning, a significant portion of the steel chain’s needs can be met by domestic production. The issue of imports, more than just including raw materials or necessary products, involves goods or services that cannot be produced domestically.
The reason for the entry of these items, goods, or services is their monopolization by foreign manufacturing companies and their specific technologies and expertise. This requires proper planning and investment to introduce and localize the technology, and necessary actions should be taken by the relevant authorities.
The import of coking coal, which is primarily used in the coke plant, is unjustified given the existing mines in the country and unfortunately leads to the outflow of foreign currency. At the same time, the price of imported coal is higher than that of domestic coal. However, the shortage of domestic coking coal production is due to the imbalance between the cost of producing the desired coal and its selling price compared to the price of concentrate.
However, regarding the shortage of iron ore, given the abundant mines, one of the ways to eliminate or reduce imports to zero is to increase exploration and extraction activities for iron ore, alongside the development plans of steel companies. Therefore, one of the challenges in this area is the lack of growth and exploration of iron ore deposits, and the imbalance between this raw material and the growth and establishment of new steel companies. It is likely that planning for the export of this product should be taken more seriously, with consideration of the existing mines in Iran.
In the field of graphite electrodes, Iran is one of the major importers of this product. The consumption of these electrodes in electric arc furnace plants, due to sanctions and the lack of direct entry of this commodity, along with the increase in production costs, creates significant expenses in the steel production sector. Currently, most producers of these electrodes are China and India. The structure of these electrodes is based on needle coke, a technology that, unfortunately, is not available in Iran, and knowledge-based companies in this field have not been successful.
Alloying elements such as chromium, nickel, and molybdenum have an impact on enhancing the physical and chemical properties of steel. Considering the effect of each of these alloying elements in steelmaking, the desired type of steel can be selected based on the desired properties and applications.
Molybdenum increases strength, chromium enhances corrosion resistance, and nickel improves oxidation resistance and increases formability.
In general, alloying elements are added to steel during production, depending on the type of steel being produced. This alloy ultimately improves the properties and quality of the steel. The amount and type of these alloys and superalloys vary depending on the specific steel grade being produced.
Regarding the machinery and equipment required in this industry, with the increasing diversification of products and the specialization of these products, the need for modern and advanced machinery and equipment has become more evident. Given the issue of sanctions and the necessity of self-sufficiency in this area, many of these machines are now being manufactured domestically. Reverse engineering and the entry of knowledge-based companies into this field have greatly contributed to achieving self-sufficiency in this area.
Although in this regard, the process of evolution still needs to be completed in order to compete with foreign samples and well-known European brands, significant advancements have been made in the localization of machinery and equipment in the rolling and melting industries, and these advancements are evident.
One of the sectors that can benefit the most from artificial intelligence is the steel industry, which has gained significant importance worldwide. Given the use of steel in various products, logistics, energy, infrastructure, and many other sectors, the significance of this matter becomes increasingly evident.
Currently, a major issue facing steel manufacturing companies is their lack of familiarity with artificial intelligence. The lack of investment in AI is due to problems such as currency market fluctuations, changes in product standards, and a shortage of budget and skilled human resources. By implementing AI in the steel industry, human and operational errors in production processes can be largely minimized. Training plays a crucial role in this matter, and given that this industry is intertwined with many scientific phenomena and other sectors, entering this field in the steel industry has its intricacies and challenges. Unfortunately, effective actions have not yet been taken by relevant authorities in this regard. Currently, we are in the early stages of such projects.
Given the vast scope of the topic and the various different solutions available, a wide range of equipment and tools are naturally required. Additionally, the specialized knowledge in this field cannot be overlooked. The role of responsible institutions, such as the Ministry of Industry, Mining, and Trade (Ministry of Industry), is crucial and highly significant in this regard.
Additionally, considering the variety of steelmaking methods (converter, electric arc furnaces, induction furnaces), the ways to save and optimize energy consumption are also diverse. While there is no significant gap in terms of required equipment and tools, there is a deficiency in terms of macro-level planning and the relevant technical and specialized knowledge. This issue requires more attention and sensitivity to address effectively.
Regarding the challenges related to equipment and materials, currently, unfortunately, many steel factories in Iran suffer from the problem of outdated and aging equipment and technologies. This issue plays a significant role in low efficiency, increased production costs, and higher maintenance expenses. Due to existing sanctions, access to knowledge and equipment is problematic. Additionally, the supply of raw materials, such as ferroalloys, iron ore, and coal, despite abundant domestic mines, remains a significant issue for this industry. The combination of outdated technology and the excessive expansion of steel plants, coupled with government policies on pricing steel products, global fluctuations in iron prices, and competition related to domestic supply of these materials, as well as challenges in imports (order registration, currency supply, currency fluctuations, etc.), further exacerbates the problems faced by these factories.
Regarding refractory materials and graphite electrodes, which are two key factors in the cost structure of steel products, it is worth mentioning that the more domestic knowledge and locally produced materials can be utilized in this regard, the more cost-effective and affordable the final products will be. Naturally, this would be more appealing to the producers.
However, regarding graphite electrodes, as mentioned earlier, the main issue lies in the technology of production (needle coke or tar). In the case of refractories, the main challenge currently is the sanctions and the difficulties in importing raw materials. Despite the existence of production knowledge, the constraints posed by these factors significantly impact the industry. non-combustible materials The factories involved in the country and the domestic market demand in this matter, the main challenges lie in the supply and import of raw materials required for refractory factories. Additionally, the issue of securing the necessary foreign currency and customs hurdles in the import process are also considered other challenges.
It is worth mentioning that although we are in a normal situation regarding the knowledge of refractory material production, it seems that we are lagging behind in terms of securing some specific and advanced materials from the latest global technologies.
Based on the above explanations, streamlining the process for the clearance of these goods by customs, securing foreign currency from the Central Bank, and eliminating ad-hoc and daily circulars are other factors that play a significant role in solving the import issue.
Considering that the final steel products are constantly diversifying and becoming more specialized, the need for advanced and up-to-date equipment, as well as access to modern technical knowledge, is increasingly evident.
It is worth noting that the use of outdated machinery and technologies not only leads to the loss of competitive market position but also increases production costs, ultimately raising the final cost of products.
Given the current sanctions and challenges related to currency supply and production costs, it is certain that the use of domestic products, machinery, equipment, and technical knowledge will play a significant role in reducing the overall cost.
Although Iran is rich in mines and resources compared to many countries, which should make steel production more cost-effective domestically, unfortunately, due to various reasons such as energy costs and incorrect government policies in the export and import of raw materials and products, this logic has sometimes been disrupted, and in some cases, importing products has become more cost-effective.
As a solution, it is recommended to employ experienced managers and experts who have valuable insights into production and future prospects of this industry. These experts should be able to implement optimal solutions through proper planning in the areas of import, export, and production, taking into account the domestic potentials.
Training and the use of modern technologies, in parallel with other countries, is another important aspect, such that the role of human factors in production and related processes is minimized.
The use of domestic raw materials and equipment will undoubtedly have a significant impact on the final cost.
Unfortunately, due to the lag in technology and related knowledge, there is no competitiveness, and this leads to higher final prices and reliance on foreign markets.
In all of these matters, the Ministry of Industry, Mine, and Trade (Ministry of Industry) plays a crucial role. It must work closely with manufacturing and knowledge-based companies to pave the way for increased production more effectively than before.
Steel World Review
