Oman significantly increases slabs export despite the lack of production capacity

Oman exported 1.53 million tons of slabs in January-October 2023, compared to 1.33 million tons in 2022 and 700 thousand tons in 2021. It is reported by Argus.Media.

The country is significantly increasing its exports of slabs despite the fact that it does not have the production capacity to produce the relevant products.

According to the report, Omani slabs are actually products made in Iran. Due to the US sanctions against Iran, most markets are afraid to trade with this country, so local traders change product documents to indicate the place of production – Oman.

The Argus cites numerous documents in which Iranian slabs are labeled as produced in Oman. The ships often sailed from Oman, then turned off their tracking systems and loaded in Iranian ports before heading to customers.

According to customs data, China, Indonesia and Thailand are the largest buyers of Omani slabs. China purchased 609.1 thousand tons in January-October, Indonesia – 410.4 thousand tons, and Thailand – 325.01 thousand tons.

In October 2023, Iran increased output of steel by 3.5% y/y – up to 3.1 million tons.

As GMK Center reported earlier, Oman has launched the construction of the Vulcan Green Steel (VGS) plant, which is the first enterprise in the country to use hydrogen as a raw material in DRI production. Vulcan Green Steel is expected to produce 5 million tons of environmentally friendly steel per year.