5% Growth in Iran Steel Output
EghtesadOnline: Iranian steel mills produced a total of 10.62 million tons of crude steel during the first five months of 2019, up 5.5% compared with 2018’s corresponding period, the latest report released by the World Steel Association shows.
Iran’s May output grew 3.8% year-on-year to hit 2.23 million tons, according to the Brussels-based international trade body for the iron and steel industry.
Iran’s world ranking remains unchanged as the world’s 10th biggest crude steel producer. The country is placed between Brazil (ninth) with 14.02 million tons and Italy (11th) with 10.47 million tons, the new report shows.
The world’s 64 steelmakers produced a total of 764.07 million tons of steel over the five months, up 5% YOY, Financial Tribune reported.
Global steel output stood at 162.74 million tons in May, indicating a 5.4% increase YOY.
China was the world’s largest crude steel producer with 404.87 million tons of steel output, up 10.2% YOY.
China was followed by India with 45.31 million tons, Japan with 42.29 million tons, the United States with 37.16 million tons, South Korea with 30.48 million tons, Russia with 29.76 million tons, Germany with 17.26 million tons and Brazil with 14.02 million tons.
Iran’s crude steel output stood at 24.52 million tons in 2018, according to Worldsteel, up 17.7% YOY.
Crude steel is defined as steel in its first solid (or usable) form: ingots and semi-finished products (billets, blooms and slabs). This is not to be confused with liquid steel, which is steel poured.
Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 million tons and 20-25 million tons of exports 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 Minister of Industries, Mining and Trade and Chairman of Board of Iranian Mines & Mining Industries Development & Renovation Khodadad Gharibpour, Iranian steel industry is an export-oriented one and exports more than 40% of its steel output.
According to Worldsteel, Iranian steel mills produced a total of 25 million tons of crude steel in 2018, up 17.7% compared with 2017.
Notably, Iran was the second biggest producer of direct reduced iron with 25.54 million tons of output in 2018.
India, Iran's primary rival in DRI output, increased its 2018 production by 2.9% YOY to 30.36 million tons.