Iran Steel Production Chain Exports Rise 23% to 7.7 Million Tons
EghtesadOnline: Iran's steel production chain exports hit 7.8 million tons during the first eight months of the current fiscal year (March 21-Nov. 21, 2019) to register a 23.5% rise compared with last year’s corresponding period, latest figures released by the Iranian Mines and Mining Industries Development and Renovation Organization show.
The average price of exports stood at $385 per ton during the period.
Exports during the eighth Iranian month (Oct. 23-Nov. 21) totaled 901,000 tons, indicating a 7.97% decline compared to the month before and a 30.58% growth compared with last year’s similar month, according to Financial Tribune.
The IMIDRO report reviewing steel production chain exports since the beginning of the fiscal 2017-18 up until the end of the eighth month of the current year—a 30-month period from March 21, 2017 to Nov. 21, 2019—also shows exports hit the lowest level in last fiscal year’s fifth month (July 23-Aug. 22, 2018) with 531,000 tons, while it hit the highest level in the current fiscal year’s fourth month (June 22-July 22, 2019) with 1.28 million tons.
Current Production Capacity at 35m Tons p.a.
Iran's current steel production capacity stands at 35 million tons per year, says Deputy Industries Minister Jafar Sarqeini.
According to the official, several steel units with an overall capacity of 10 million tons are currently under construction with a physical progress of over 50%, while another 10 million tons of capacity have been planned.
“All these efforts are aimed at reaching the target of 55 million tons of steel in the 20-year Vision Plan [ending 2025],” he was quoted as saying by Fars News Agency.
Sarqeini noted that for the past three to four years, steel production growth in Iran has always been higher than the global average.
"Steel exports will exceed 11 million tons this year, up 30% from 8.5 million tons last year," he added.
According to the Iranian Steel Producers Association's latest report, steel production in Iran stood at 30.98 million tons during the eight months to Nov. 21 to register a 5.82% year-on-year increase.
Semi-finished steel made up 17.42 million tons of the total output, up 5% YOY.
Billet and bloom made up 10.25 million tons of semi-finished production while slab output hit 7.17 million tons to register an 11% rise and a 3% decline respectively YOY.
As for finished steel, the output increased by 7% YOY to 13.55 million tons.
Flat steel products had the lion's share of finished steel production with 6.8 million tons, up 4% YOY. HRC made up 5.71 million tons of the production in this category, registering a 3% growth YOY, followed by CRC with 1.71 million tons (up 4% YOY) and coated coil with 1.09 million tons (up 20% YOY).
Long steel products had a 6.75-million-ton share in the output of finished steel products, posting a 9% rise YOY. Rebar had a major share here with 5.45 million tons (up 9% YOY), followed by beams with 740,000 tons (up 22% YOY) and L-beam, T-beam and other types with 556,000 tons (up 9% YOY).
Iran is the world's 10th biggest producer of steel and the second biggest producer of sponge iron after India, according to World Steel Association.
According to World Steel Association's latest data, Iran is the 10th biggest producer of steel in the world.
Worldsteel's latest report shows the country produced a total of 21.51 million tons of crude steel during the 10 months of 2019 (January to October), up 6.2% compared with the corresponding period of 2018.
According to Deputy Minister of Industries, Mining and Trade Khodadad Gharibpour, Iranian steel industry is an export-oriented one that exports more than 40% of its steel output.
IMIDRO Expects Capacity to Hit 43.6m Tons by March 2021
Iran’s steel production capacity is expected to reach 43.6 million tons by the end of the next Iranian year (March 20, 2021), while the actual production is estimated to hit 31.1 million tons by utilizinh 71% of the nominal capacity, according to the Iranian Mines and Mining Industries Development and Renovation Organization.
IMIDRO also expects direct-reduced iron production capacity to reach 37.2 million tons by the end of next Iranian year, while the actual production is estimated to reach 33.6 million tons to utilize 90% of the nameplate capacity.
Pellet production capacity is expected to reach 66.4 million tons, while actual production is predicted to total 55.3 million tons, realizing 83% of the capacity.
Concentrate production capacity is estimated to hit 68.5 million tons, while actual production would reach 58.1 million tons, realizing 85% of the capacity by March 20, 2021.
Sangan Iron Ore Mines to Expand Capacity
Iran's major iron ore production complex, Sangan, located in Iran's northeastern Khorasan Razavi near the Afghan border, currently has the capacity to produce 10 million tons of pellets and 5.1 million tons of iron ore concentrates per year.
Abbas Naeimi, the deputy head of Iranian Mines and Mining Industries Development and Renovation Organization, said the iron ore complex plans to add 2.5 million tons to its pellet and 5 million tons to it iron ore concentrate production capacities by the end of the current Iranian year (March 19).
That means that with implementation of development plans, Sangan’s pellet and iron ore concentrate production capacities will increase to 12.5 and 10.1 million tons by March 19.
Naeimi added that the complex is pursuing plans to increase its pellet production capacity to 15 million tons and iron ore concentrate production to 17.5 million tons in the long term, IMIDRO reported on its website.
According to the official, Sangan’s iron ore concentrate and pellet development plans have attracted $1 billion worth of investment to date.
Latest ISPA data indicate a total of 31.54 million tons of iron ore concentrates were produced in Iran during the eight months to Nov. 21 to register a 4% growth year-on-year.
Pellet output hit 27.73 million tons during the eight months, remaining unchanged YOY.
A total of 18.55 million tons of direct reduced iron were produced in the country during the same period, 7% more compared with last year's corresponding period.
Iran is the world's second biggest producer of DRI after India.
According to the World Steel Association's latest report, 24 million tons of DRI were produced in Iran during January-October.
India, Iran's primary rival in DRI output, increased its 10-month production by 6.1% YOY to 30.05 million tons.