EghtesadOnline: Iranian steelmakers produced 12.5 million tons of semi-finished and finished steel products during the first quarter of the current fiscal year (March 20-June 20) to register a 2.21% year-on-year increase.
According to the Iranian Steel Producers Association’s latest report, semi-finished steel made up 7.14 million tons of the total output, up 3% YOY.
Billet and bloom made up 4.12 million tons of semi-finished production while slab output hit 3.02 million tons to register a 3% decline and a 12% rise respectively YOY.
As for finished steel, the output increased by 1% YOY to reach 5.33 million tons.
Flat steel products had the lion’s share of finished steel production with 2.67 million tons, down 1% YOY. Hot-rolled coil made up 2.3 million tons of the production in this category, showing a 1% rise compared with the similar period of last year, followed by cold-rolled coil with 655,000 tons that also registered a 1% rise YOY and coated coil with 322,000 tons (down 25% YOY).
Long steel products had a 2.66 million-ton share in the output of finished steel products, posting a 4% growth YOY. Rebar had a major share with 2.17 million tons (up 5% YOY), followed by beams with 297,000 tons (down 1% YOY) and L-beam, T-beam and other types with 193,000 tons (down 5% YOY).
MSC Remains on Top
With 4.72 million tons of output, Mobarakeh Steel Company had the largest share of steel production in Iran during the first three months of the current fiscal year.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.
According to a report by the Iranian Mines and Mining Industries Development and Renovation Organization, the company produced 2.12 million tons of finished steel during the period, to register a 4% decline compared with last year’s corresponding period.
In addition, close to 2.6 million tons of semi-finished products were produced by MSC, up 10% year-on-year.
In terms of finished steel production, MSC was followed by Esfahan Steel Company (ESCO) with 571,121 tons (down 4% YOY), Khouzestan Oxin Steel Company with 230,787 tons (up 8% YOY), Khorasan Steel Company with 117,401 tons (down 32% YOY) and Azarbaijan Steel Company with 89,213 tons (up 11% YOY) during the first quarter of the current fiscal year.
In terms of semis production, MSC was followed by KSC with close to 1.03 million tons (up 4% YOY), Esfahan Steel Company with 586,009 tons (down 7% YOY), Chadormalu Steel Company with 254,165 tons (down 3% YOY), South Kaveh Steel Company with 232,596 tons (down 21% YOY) and Khorasan Steel Company with 218,037 tons (down 21% YOY).
DRI Output Rises 12%
Direct-reduced iron production stood at 8.13 million tons in Q1, indicating a 12% growth YOY.
IMIDRO data show Mobarakeh Steel Company also accounted for the largest share of DRI output during the current fiscal year’s first quarter with 2.06 million tons (up 3% YOY), followed by Khuzestan Steel Company with 1.25 million tons (up 15% YOY), Chadormalu Steel Company with 421,381 tons (up 22% YOY), Golgohar 789,343 tons, South Kaveh Steel Company with 420,796 tons (up 12% YOY), Hormozgan Steel Company with 401,472 tons (down 1% YOY), Saba Steel Complex with 386,548 tons (up 19% YOY), Khorasan Steel Company with 271,978 tons (down 26% YOY), Sirjan Jahan Steel Company (SJSC) with 258,077 tons (up 55%), Persian Gulf Saba Steel with 234,372 tons, Neyriz Steel Complex with 219,346 tons (up 26% YOY), Sefiddasht Steel Company with 215,917 tons (up 8% YOY) and Arfa Steel Company with 214,351 tons (up 12% YOY).
Other major DRI producers included Mianeh Steel Complex with 205,590 tons (up 106% YOY), Sabzevar Steel Company with 192,440 tons (up 8% YOY), Baft Steel Company with 189,008 tons (up 293% YOY), Ghadir Iron and Steel Company with 187,436 tons (up 3% YOY), Shadegan Steel Complex with 186,466 tons (up 52% YOY) and Middle East Mines and Mining Industries Development Holding Company with 115,950 tons (down 42% YOY).
Iran’s total DRI output in the third month of the current fiscal year to June 20 grew 16% year-on-year to 2.66 million tons.
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.
IMIDRO expects DRI production capacity to reach 37.2 million tons by the fiscal yearend, while the actual production is estimated to reach 33.6 million tons to utilize 90% of its nameplate capacity.
World’s 10th Steelmaker
The latest data released by the World Steel Association ranks Iran the world’s 10th biggest steel manufacturer.
Iranian mills produced a total of 11.44 million tons of crude steel during January-May, which indicates an 11.1% rise compared with the corresponding period of 2019, the data show.
The country's May output hit 2.35 million tons to witness a year-on-year growth of 8.9%, according to the Brussels-based international trade body for the iron and steel industry.
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.
The country’s steel production capacity is expected to reach 43.6 million tons by the end of the current Iranian year (March 20, 2021), while the actual production is estimated to hit 31.1 million tons to utilize 71% of the nominal capacity, according to IMIDRO.
Iran’s crude steel output stood at 31.9 million tons in 2019, according to Worldsteel, up 30.1% YOY.