Iran's Steel Output Gains 9.6%
EghtesadOnline: Iranian steel mills produced 10 million tons of crude steel in the first four months of 2021, which indicate a 9.6% rise compared with 2020.
As per the latest report released by World Steel Association, Iran's April output amounted to 2.5 million tons, up 6.4%.
The report ranks Iran the world’s 10th biggest crude steel producer. China was the world’s largest crude steel producer in the four-month period with 374.6 million tons of steel output, up 15.8% YOY.
It was followed by India with 38.2 million tons (up 26.9%), Japan with 31.5 million tons (up 2.7%), the United States with 27.3 million tons (up 2.8%), Russia with 25.5 million tons (up 7.1%), South Korea with 23.4 million tons (up 6.5%), Germany with 13.5 million tons (up 9%) and Turkey with 13.1 million tons (up 16.9%).
Iran is placed after Brazil (ninth) with 11.8 million tons, 15.9% higher than the corresponding period of 2020.
The world’s 64 steelmakers produced a total of 662.8 million tons of steel over the four months, up 13.7% YOY. States located in Asia and Oceania collectively produced 487.8 million tons of the total output.
The Middle East produced 14.1 million tons of crude steel in the period under review, posting an increase of 18.2% compared with the same period of last year.
Global steel output experienced a 23.3% growth in April with 169.5 million tons.
World's major steel producers seem to have recovered their output in 2021, after the global closure of businesses and disruption in industrial operations, as a result of the Covid-19 outbreak in early 2019.
Global output is expected to keep rising in the coming months as coronavirus restrictions ease and high prices encourage production, according to Reuters, which says the 23% growth is exaggerated due to closures a year ago when the pandemic was at its height.
"The year-on-year growth rate is flattered by base effects," Caroline Bain, chief commodities economist at Capital Economics, said in a note.
"That being said, by our calculations, daily global steel output rose by close to 3.5% month-on-month in April ... in large part owing to high and rising global steel prices."
Lower month-on-month output in India was offset by large gains in China, Russia and Brazil, she added.
Crude steel output from China, the world's top producer and consumer of the metal, gained 7.5% in April compared with March, the World Steel Association data showed, despite efforts by authorities to dampen output to curb carbon emissions.
Renewed pandemic restrictions were likely behind the 14.4% month-on-month drop in Indian steel production and the 2% dip in European Union output, Bain said.
The association, a group of producers that accounts for about 85% of global steel output, last month upgraded its global demand forecast to a rise of 5.8% this year.
"A number of capacity expansions and restarts have been announced, particularly in the US and India. Accordingly, we expect global steel production to rise this year, which will ultimately lead to lower regional prices," Bain said.
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.
The World Steel Association is one of the largest and most dynamic industry associations in the world, with members in every major steel-producing country. Worldsteel represents steel producers, national and regional steel industry associations and steel research institutes. Members represent around 85% of global steel production.
The 64 countries included in this table represent around 85% of global steel production.
Iranian steel mills produced 29.02 million tons of crude steel in 2020, which indicate a 13.35% rise compared with 2019, the highest growth in output among the world's top 10 producers.
MSC Tops Producers’ List
Mobarakeh Steel Company, the largest steel producer in Iran, recorded an 8% growth in its annual semi-finished steel output during the last Iranian year (ended March 20, 2021).
With a production of 9.84 million tons of semi-finished products, the company topped the list of Iranian steel mills. The output registered an 8% year-on-year rise.
The company’s output during the 12th month of the year (Feb. 20-March 19) increased by 24% to reach 915,311 tons, latest figures released by Iranian Mines and Mining Industries Development and Renovation Organization show.
Mobarakeh also topped the list of steel producers in terms of finished products. MSC and its subsidiary Saba Steel produced 8.03 million tons of finished steel in the last fiscal year, unchanged compared with the year before.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.
In terms of semis production, MSC was followed by Khuzestan Steel Company with 3.78 million tons of output. The number indicates a 3% growth compared with the year before.
KSC’s semi-finished output also grew by 6% during the 12th month of the year to reach 312,891 tons.
Esfahan Steel Company came next with 2.35 million tons of bloom output during last year, marking a decline of 3% year-on-year. The company's monthly output of semis dropped by 1% to 205,526 tons.
South Kaveh Steel Company with 1.39 million tons (up 20% YoY), Chadormalu Steel Company with 1.025 tons and Khorasan Steel Company with 940,402 tons (down 20% YOY) were other main producers of semi-finished products last year.
South Kaveh Steel Company ranked fourth in terms of monthly semis output and recorded the highest monthly growth during the month to March 20. The company’s output stood at 139,409 tons during the month under review, up 61%.
Sirjan Jahan Steel Company posted a 141% growth in semis output during the year under review, the highest growth among steel heavyweights.
The heavyweight Iranian steel mills under the IMIDRO study collectively produced 22.54 million tons of semi-finished products in the last fiscal year, recording an 8% growth year-on-year.
A total of 2.04 million tons of semi-finished steel were produced by these mills during the 12th month of the fiscal year, up 17% year-on-year.
As for production of finished products, MSC was followed by ESCO with 2.24 million tons (3% lower than the year before).
Other key producers of finished products were Khorasan Steel Company, Bonab Sheet Company, Ahvaz Rolling and Pipe Manufacturing Company, Azarbaijan Steel Company, Sirjan Steel Company and INSIG.
A total of 14.58 million tons of finished steel products, including hot- and cold-rolled coils, rebar, beams, pipes, wide and galvanized sheets, were produced by Iranian heavyweight steelmakers under IMIDRO review in the last fiscal year, up 3% YOY.
Their output of finished steel products hit 1.24 million tons in the 12th fiscal month to register a 9% increase YOY.
As the IMIDRO report does not take into account the production of small-scale steel mills, the total output in Iran is higher than the quoted figures.
Another report will be released by the Iranian Steel Producers Association soon, covering the output of all the steelmakers of Iran in the last fiscal year.