Orders local customers place with MSC up 58 percent

He characterized this production growth as a giant step toward securing customer satisfaction in the country and said in the eight months to November 20, Mobarakeh Steel Company has received orders for delivery of 3.6 million tons of products on the local market, a 58 percent increase over 2.283 million tons during the similar period last year.

Akbari went on to say that the steel giant’s approach focuses on an ever-growing supply of products to the local market. MSC has also received orders from overseas for 850,000 tons of products, down 23 percent in comparison with 1.095 million tons during the same period in 2015. “This shows that Mobarakeh Steel Company is determined to support local downstream industries.”

The MSC production basket includes a range of data-x-items such as slabs, hot- and cold-rolled sheets and coated products, he said, adding during the 8-month period slabs accounted for 8 percent of the company’s sales. The share of hot-rolled and cold-rolled sheets stood at 65 percent and 18 percent respectively. Coated sheets accounted for 5 percent of the company’s entire sales.

He said given that there has been a shift in the makeup of local demand, MSC exports mostly include data-x-items which are not in high demand on the local market. “For instance, orders have been received for export of more than 250,000 tons of slabs so far this year.”

As for target markets of the steel giant within the country, he said MSC offers its products to an array of customers on the local markets. Pipe and profile makers top the list of MSC customers (30 percent) in market for hot-rolled sheets, and automotive companies are the top customers for cold-rolled sheets (15 percent). “In total, roughly 78 percent of the company’s sales find their way to plants that are involved in producing pipes and profiles, automobiles, heavy metal equipment, steel data-x-items and rolls and others.”

As for overseas markets, he said as much as 50 percent of MSC exports is shipped to Europe. The share of countries in the Middle East and the Far East stands at 33 percent and 17 percent respectively.

The volume of orders MSC received for quality products has registered a 16 percent rise over last year to reach 787,497 tons, he said, adding MSC produces a variety of industrial data-x-items to be used in different downstream industries. “Production corresponds to customer demands, and MSC polices are adjusted in line with market conditions.” 

Akbari went on to say that systematic studies involving the market are conducted; following the receipt of information on customer demands, different variables are analyzed to make projections about local and foreign market demands in the medium and long run before the most appropriate production and sales plans which are compatible with market demand and with the capabilities of productions lines are placed on the agenda of the company. These plans are updated throughout the year in line with market conditions.

In conclusion, he said in this business market, the role of the marketing and sales department – as the chief production policymaker – is very important. That importance comes to the fore in tough years and in continuous trend of production at Mobarakeh Steel Company.