EghtesadOnline: World Steel Association's latest report shows Iran's global standing in steel production has climbed from the previous 10th to eighth place.
According to the Brussels-based international trade body for the iron and steel industry, Iranian steel mills produced a total of 2.89 million tons of crude steel in January 2020, which indicates a 46.9% year-on-year rise, Financial Tribune reported.
Iran is now placed between Turkey (seventh) with 3.01 million tons of production and Germany (ninth) with 2.84 million tons, the new report shows.
The world’s 64 steelmakers produced a total of 154.43 million tons of steel in January, up 2.1% YOY.
China was the world’s largest crude steel producer during the period with 84.26 million tons of output, up 7.2% YOY.
China was followed by India with 9.28 million tons, Japan with 8.24 million tons, the United States with 7.7 million tons, Russia with 6 million tons and South Korea with 5.75 million tons.
Iran’s crude steel output stood at 31.9 million tons in 2019, up 30.1% 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 more than 34 million tons of the capacity target.
A recent report by the Iranian Mines and Mining Industries Development and Renovation (IMIDRO) on under-construction steel production units indicated a total of 19.1 million tons will be added to Iran’s annual steel production capacity when all these units become operational in the fiscal 2023-24.
The addition of 19.1 million tons to the current capacity means the aggregate output capacity will reach 54.1 million tons by March 2024—only 900,000 tons short of the target, for which Iranian steelmakers will have one more year.
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 IMIDRO, 23.15 million tons/year are expected to be added to Iran’s iron ore concentrate production capacity by the time the development of all these units is complete in the fiscal 2023-24.
A total of 25.92 million tons are expected to be added to Iran’s iron ore pellet production capacity by the time the development of all these units is complete in the Iranian year 1402 (March 2023-24).
A total of 11 million tons is expected to be added to Iran’s direct-reduced iron production capacity by the time the construction of all these units is complete.
According to Deputy Minister of Industries, Mining and Trade and IMIDRO Chairman Khodadad Gharibpour, Iranian steel industry is an export-oriented one that exports more than 40% of its steel output.
According to the Iranian Steel Producers Association's latest report, Iranian steelmakers produced 39.46 million tons of semi-finished and finished steel products during the first 10 months of the current Iranian year (March 21, 2019-Jan. 20) to register an 8.79% year-on-year increase.
Semi-finished steel made up 22.87 million tons of the total output, up 11% YOY.
Billet and bloom made up 13.95 million tons of semi-finished production while slab output hit 8.91 million tons to register a 19% rise and a 1% decline respectively YOY.
As for finished steel, the output increased 6% YOY to 16.59 million tons.
Long steel products had the lion's share of finished steel production with 8.41 million tons, up 8% YOY. Rebar had a major share here with 6.79 million tons (up 8% YOY), followed by beams with 941,000 tons (up 12% YOY) and L-beam, T-beam and other types with 677,000 tons (up 11% YOY).
Flat steel products had an 8.17 million-ton share in the output of finished steel products, posting a 4% rise YOY. HRC made up 6.92 million tons of the production in this category, registering a 5% growth YOY, followed by CRC with 2.17 million tons (up 4% YOY) and coated coil with 1.43 million tons (up 25% YOY).
Direct-reduced iron production stood at 23.68 million tons during the 10-month period, indicating an 8% rise YOY.
This is while pellet production amounted to 34.36 million tons, as concentrate output reached 39.34 million tons, indicating a 2% decline and a 3% rise respectively YOY.