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EghtesadOnline: Iran produced 8.08 million tons of iron ore concentrate during the first two months of the current fiscal year (March 21-May 21), which figure remains unchanged compared with the corresponding period of the year before.

According to the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report, Golgohar Mining and Industrial Complex accounted for 2.81 million tons of the total output (down 7% YOY), followed by Chadormalu Mining and Industrial Complex with 1.85 million tons (up 27% YOY), Middle East Mines and Mining Industries Development Holding Company with 934,491 tons (down 8% YOY) and Iran Central Iron Ore Company with 782,618 tons (down 14% YOY).

Other major producers included Goharzamin Iron Ore Company with 736,274 tons (unchanged YOY), Opal Parsian Sangan with 490,014 tons (up 9% YOY), National Development Company with 302,778 tons (up 93% YOY), Sabanour Mining and Industrial Development Company with 98,371 tons (down 48% YOY) and Jalalabad Iron Ore Complex with 74,057 tons (down 36% YOY).

Iron ore concentrate output during the second Iranian month amounted to 4.06 million tons to register a 2% growth compared with last year’s same month, Financial Tribune reported.

Pellet output hit 7.23 million tons during the year, down 2% YOY. Golgohar was the largest producer with 2.07 million tons (down 3% YOY), followed by Mobarakeh Steel Company with 1.31 million tons (down 3% YOY), MIDHCO with 1.09 million (up 36% YOY), Khouzestan Steel Company with 1.07 million tons (down 9% YOY) and Chadormalu with 704,622 tons (up 2% YOY).

Major pellet producers included Opal Parsian Sangan with 621,104 tons (down 12% YOY), Sangan Mineral and Industrial Company with 213,891 tons (down 39% YOY), Khorasan Steel Company with 71,044 tons (down 2% YOY) and Sabanour Mining and Industrial Development Company with 58,054 tons (up 84% YOY).

Pellet production witnessed a 9% year-on-year decrease during the second month to 3.42 million tons.

Production of direct-reduced iron stood at 4.84 million tons during the two-month period, up 12% YOY. Mobarakeh accounted for the largest share of the output with 1.39 million tons (up 3% YOY), followed by KSC with 724,817 tons (up 19% YOY), Golgohar with 515,865 tons, Hormozgan Steel Company with 278,815 tons (down 5% YOY), South Kaveh Steel Company with 258,410 tons (up 15% YOY), Khorasan Steel Company with 241,725 million tons (up 5% YOY), Chadormalu Steel Company with 240,725 tons (unchanged YOY) and Saba Steel Complex with 225,654 tons (up 12% YOY).

The report noted that other major DRI producers were Arfa Steel Company with 145,735 tons (down 1% YOY), Sefiddasht Steel Company with 131,703 tons (up 21% YOY), MIDHCO with 126,428 tons (down 17% YOY), Sabzevar Steel Company with 119,236 tons (down 11% YOY), Neyriz Steel Complex with 113,808 tons (up 3% YOY), Ghadir Iron and Steel Company with 110,946 tons (down 20% YOY), Shadegan Steel Complex with 65,810 tons (down 46% YOY), Mianeh Steel Complex with 56,624 tons (down 57% YOY) and Esfahan Steel Company with 14,863 tons (down 59% YOY).

DRI production reached 2.38 million tons during the month ending May 21, indicating a 15% growth YOY.

Iran was the second biggest producer in the world, after India, with 9.3 million tons of DRI production during the four months of 2019 to register a 17.7% year-on-year growth, according to World Steel Association.

India, Iran's primary rival in DRI output, increased its four-month production by 2.1% YOY to 11.03 million tons.

Iran produced 25.54 million tons of DRI in 2018, up 31.6% YOY, to become the second biggest global DRI producer during the year after India with 30.36 million tons.



Downstream Output

From the above raw materials, a total of 3.42 million tons of ingot, bloom and billet were produced during the two-month period under review, down 1% YOY. Mobarakeh Steel Company, with its subsidiaries Saba and Hormozgan Steel, was the biggest producer with 1.56 million tons (down 8% YOY). KSC came next with 645,812 tons (down 2% YOY), followed by ESCO with 421,195 tons (up 1% YOY), South Kaveh Steel Company with 199,220 tons (up 17% YOY), Khorasan Steel Company with 183,020 tons (down 1% YOY), Chadormalu Steel Company with 175,388 tons (up 25% YOY), Arfa Iron and Steel Company with 150,263 tons (up 24% YOY) and Iran Alloy Steel Company with 85,016 tons (up 42% YOY).

As for output during the second month of the Iranian calendar year, a total of 1.66 million tons of slab, bloom, billet and ingot were produced to register a 2% decline YOY.

A total of 2.07 million tons of finished steel products, including hot- and cold-rolled coils, rebar, beams, pipes, wide and galvanized sheets, were produced during the two months, up 6% YOY. 

MSC and its subsidiary Saba Steel had the largest share of production with 1.21 million tons (up 2% YOY), followed by ESCO with 397,987 tons (down 3% YOY), Oxin Steel Company with 132,872 tons (up 9% YOY), Khorasan Steel Company with 116,957 tons (up 9% YOY), Azarbaijan Steel Company with 47,229 tons (down 8% YOY) and IASCO with 44,067 tons—40,411 tons of rebar (up 75% YOY) and 3,656 tons of other products (up 78% YOY).

Other key producers of finished products were Chaharmahal-Bakhtiari Automotive Sheet Company with 42,212 tons (up 40% YOY), Ahvaz Rolling and Pipe Manufacturing Company with 55,000 tons (up 568% YOY) and INSIG with 21,397 tons—17,152 tons of rebar, 2,380 tons of beam and 1,865 tons of pipes (unchanged YOY).

The production of finished steel products stood at 1.05 million tons in the second fiscal month to register a 7% growth YOY.

“Currently, Iran’s steel production capacity stands at 34 million tons per year,” Deputy Industries Minister Jafar Sarqeini said.

Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets the expansion of annual production capacity to 55 million tons and exports to 20-25 million tons per year by 2025. Iranian steel mills have so far realized just over 30 million tons of the capacity target.

The country has been working to increase its iron ore processing capacity, including both DRI and hot-briquetted iron production to feed its steelmaking expansion target.

According to Deputy Industries Minister Khodadad Gharibpour, Iranian steel industry is export oriented, such that the country exports more than 40% of its steel production.


Iran IMIDRO steel iron ore concentrate Steel Output Upstream Downstream