EghtesadOnline: Iran has registered the highest growth in crude steel production among the world's top 10 producers, the latest report released by the World Steel Association shows.
Iranian steel mills produced a total of 20.82 million tons of crude steel during the first nine months of 2020, which indicate a 9% rise compared with the corresponding period of 2019, according to the Brussels-based international trade body for the iron and steel industry.
Iran remains the world’s 10th biggest crude steel producer—unchanged compared to the previous monthly report.
The closure of businesses and disruption in industrial operations, as a result of Covid-19 spreading in early 2020, was among key factors causing drops in the output of countries ranked above Iran during the nine-month period.
Iran's September output decreased by 2% year-on-year to hit 2.26 million tons.
The country is placed between Brazil (ninth) with 22.34 million tons and Vietnam (11th) with 17.7 million tons.
The world’s 64 steelmakers produced a total of 1.34 billion tons of steel over the nine months, down 4% YOY.
Global steel output stood at 156.4 million tons in September, indicating a 3.2% YOY increase.
During the first three quarters of 2020, China was the world’s largest crude steel producer with 783.3 million tons of steel output, up 5% YOY.
It was followed by India with 70.2 million tons, Japan with 61.2 million tons, the United States with 53.4 million tons, Russia with 53.2 million tons, South Korea with 49.6 million tons, Turkey with 25.9 million tons and Germany with 25.7 million tons.
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.
ISPA: H1 Output Rises 9% to Over 25m Tons
The Iranian Steel Producers Association’s latest report shows Iranian steelmakers produced a total of 25.39 million tons of semi-finished and finished steel products during the first half of the current fiscal year (March 20-Sept. 21) to register a 9.16% year-on-year increase.
Semis accounted for 14.39 million tons of the total output, up 10% YOY.
Billet and bloom made up 8.67 million tons of semi-finished production while slab output hit 5.7 million tons to register a 13% and 6% YOY rise respectively.
The output of finished steel increased by 8% YOY to 11 million tons.
Long steel products had a 5.56 million-ton share in the output of finished steel products, posting a 13% growth YOY.
Rebar production stood at 4.54 million tons (up 15% YOY). It was followed by beams with 626,000 tons (up 17% YOY) and L-beam, T-beam and other types with 393,000 tons (down 4% YOY).
Production of flat steel picked up during the six-month period, increasing 3% year-on-year to 5.43 million tons.
Hot-rolled coil made up 4.5 million tons of the production in this category, showing a 4% rise compared with the similar period of last year, followed by cold-rolled coil with 1.368 tons to register a 5% YOY rise, and coated coil with 766,000 tons (down 6%).
Latest statistics released by Iranian Mines and Mining Industries Development and Renovation Organization show Mobarakeh Steel Company has cemented its position as the top steel producer of Iran.
According to IMIDRO, Mobarakeh produced more than 4.19 million tons of semi-finished steel products during the first six month of the current Iranian year.
The mill's semi-finished output was 5% higher than the first half of the previous fiscal year.
The company’s output during the sixth month of the current fiscal year increased by 5% to reach 701,966 tons.
MSC and its subsidiary Saba Steel also had the largest share of finished steel production with 4.19 million tons during the period under review (down 3% YOY).
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.
In production of semis, MSC was followed by Khuzestan Steel Company with 1.97 million tons of output in H1. The number indicates a growth of 4% compared with the same period of last year.
KSC’s semi-finished output increased by 10% in the sixth month of the year to 321,380 tons.
Esfahan Steel Company came next with 1.17 million tons of bloom output during the first half of the fiscal year, marking a decline of 3% year-on-year.
South Kaveh Steel Company with 559,590 tons (down 5% YOY), Khorasan Steel Company with 491,051 tons (down 13% YOY) and Chadormalu Steel Company with 479,142 tons (down 3% YOY) followed.
Ranking third in terms of monthly semi-output production during the month to Sept. 22, South Kaveh Steel Company’s output stood at 125,851 tons during the one-month period, up 27%. ESCO’s monthly production decreased by 2% to 210,815 tons.
In terms of finished products, MSC was followed by ESCO with 1.13 million tons (almost unchanged compared to the year before), Oxin Steel Company with 457,836 tons (up 9% YOY) and Khorasan Steel Company with 260,508 tons (up 9% YOY).
Other key producers of finished products were Chaharmahal-Bakhtiari Automotive Sheet Company, Ahvaz Rolling and Pipe Manufacturing Company and INSIG.
Iran's nominal steel production capacity is set to increase to 42 million tons per annum by the end of the current fiscal year on March 20, 2021, says Chairman of Iranian Mines and Mining Industries Development and Renovation Organization Khodadad Gharibpour.
The boost in capacity, he added, will also lead to a jump in the country’s total output, putting it at a record high of 31 million tons per annum by March 2021, he was quoted as saying by IRNA.
The country’s current steel production capacity stands at 37.5 million tons per year. Iran produced 27.5 million tons of steel during the last fiscal year (March 2019-20).
Gharibpour referred to the vital role of steel sector in the job market, saying, “About 200,000 people are directly involved in the steel industry. Each direct job in the industry – from the mining sector to the end of the processing chain – leads to the creation of 17 indirect jobs.”
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.
According to a recent report by Iranian Mines and Mining Industries Development and Renovation Organization on development of under-construction steel production units, a total of 19.1 million tons will be added to Iran’s annual steel production capacity when all these units are completed in the fiscal 2023-24.
The addition of 19.1 million tons by the time the under-construction projects come on stream to the current capacity means the aggregate output capacity will reach 54.1 by March 2024, only 900,000 tons short of the target, for reaching which Iranian steelmakers will have one more year.