EghtesadOnline: Mobarakeh Steel Company produced 5.38 million tons of semi-finished products in the current fiscal year’s first seven months (March 21-Oct. 22), down 7% year-on-year.
The steelmaker also produced 4.38 million tons of finished steel during the period, down 9% YOY, according to the Iranian Mines and Mining Industries Development and Renovation Organization.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer not only in Iran but also in the Middle East and North Africa region.
In terms of semis production, MSC was followed by Khuzestan Steel Company with 1.75 million tons of output during the seven months.
Esfahan Steel Company came next with 1.33 million tons of semis output and was followed by South Kaveh Steel Company with 763,883 tons, Chadormalu Steel Company with 550,397 tons and Khorasan Steel Company with 511,763 tons during the period under review.
In terms of finished products, MSC was followed by ESCO with 1.28 million tons. Other key producers of finished products were Kavir Steel Company, Oxin Steel Company, Khorasan Steel Company, Bonab Sheet Company, Azarbaijan Steel Company and Sirjan Steel Company.
MSC also topped the list of Iranian steelmakers both in semi-finished and finished steel production during the current fiscal year’s seventh month (Sept. 23-Oct. 22) by producing 976,250 and 648,876 tons of semis and finished steel products respectively.
A total of 2.16 million tons of semis were produced in the month under review, 12% higher than last year’s corresponding period.
Finished steel products’ output during the period stood at 1.24 million tons, registering a 4% growth year-on-year.
Iranian steelmakers produced a total of 15.77 million tons of semi-finished products during the seven months to Oct. 22, down 11% YOY.
According to the Iranian Steel Producers Association, billet and bloom made up 9.33 million tons of total semi-finished production, down 15% YOY and slab output reached 6.44 million tons to register a 5% decline YOY.
The output of finished steel decreased by 8% YOY to 11.03 million tons.
Long steel products had a 6.29 million-ton share in the output of finished steel products, posting a 3% decline compared with the similar period of last year.
Rebar production stood at 5.14 million tons (down 3% YOY). It was followed by beams with 697,000 tons (down 9% YOY) and L-beam, T-beam and other types with 469,000 tons (unchanged from the corresponding period of last year).
Production of flat steel with 4.74 million tons registered a 13% YOY decline in the seven-month period.
Hot-rolled coil made up 4.66 million tons of the production in this category, showing a 12% YOY decline, followed by cold-rolled coil with 1.41 million tons, down 12% YOY; and coated coil with 860,000 down 5% compared with last year’s corresponding period.
Iran's output of direct reduced iron stood at 17.38 million tons during the period, down 4% YOY.
Output Hit by Power Restrictions in Summer
The decline in steel output is due to the power outages and restrictions imposed on steelmakers in summer.
In a letter to the Supreme National Security Council, ISPA put steel mills’ losses caused by power outages at $6 billion from the beginning of the current Iranian year (March 21) to Sept. 12.
According to ISPA, 82 days of production were lost during the period due to power outages and 300,000 direct and indirect jobs were lost or restricted, the news portal of the association reported.
Summer demand led to severe power and water shortage in summer in most regions, resulting in blackouts and dry taps.
Electricity consumption on June 20 surpassed 62,000 MW.
The record followed high temperatures nationwide, which drove general electricity consumption to new heights, prompting authorities to prioritize domestic users over industries in supplying power.
As the manufacture of steel and related products is an energy-intensive process, steel and cement factories were subsequently restricted by the Iran Power Generation, Distribution and Transmission Company (locally known as Tavanir) and have been only allowed to work at a fraction of their capacity within specified hours.
The abrupt ban on the two key sectors created shortages of steel and cement in the local market and prices increased overnight, creating new problems for most construction sectors.
According to Tavanir Spokesman Mostafa Rajabi Mashhadi, all power restrictions for industries were lifted on Sept. 23.
Appreciating the cooperation of the steel industry, he announced the end of electricity supply restrictions to the industry.
“This summer, a series of challenges such as unprecedented drought made it difficult to provide sustainable electricity to all subscribers, so given the priority of electricity supply to households and public sectors, we were forced to impose restrictions on the industrial sector,” he was quoted as saying by ISNA.
KSC Tops Exporters’ List
Khouzestan Steel Company exported 975,094 tons of products in the seven-month period to register an 11% year-on-year rise and top the list of Iranian exporters.
KSC's exports in the seventh month of the year (Sept 23-Oct. 22) stood at 71,337 tons, 65% less compared with the same period of last year.
Mobarakeh Steel Company came next with 726,125 tons of exports during the seven-month period, up 51% YOY.
MSC exported 105,897 tons of steel products in the period, down 46% YOY. It was followed by Esfahan Steel Company with 692,099 tons of exports, 26% higher YOY.
The company's exports during the month to Oct. 22 stood at 86,492 tons, 4% less YOY.
Sirjan Iranian Steel Company registered the highest growth of 257% in export volume with 149,995 tons during the seven-month period.
According to ISPA, a total of 4.06 million tons of semi-finished steel products were exported from Iran in the seven months, up 27% compared with the previous year’s similar period.
Billet and bloom had the lion’s share of semis exports with an aggregate volume of 2.72 million tons, 11% higher than the previous corresponding period.
Slab exports amounted to 1.34 million tons during the period, up 80% year-on-year.
Exports of finished steel products grew by 38% to 1.86 million tons during the seven months under review.
Rebar accounted for the largest portion of finished steel products exported from Iran during the period, with 1.31 million tons. The total volume of Iran’s rebar exports experienced a 57% growth compared with the same period of last year.
Beam exports amounted to 75,000 tons during the period under review, down 21% YOY.
About 104,000 tons of L-beam, T-beam and other types were also exported from Iran during the period, unchanged from the corresponding period of last year.
Hot-rolled coil exports amounted to 291,000 tons, registering a 24% growth compared with the year before.
Cold-rolled coil with 11,000 tons registered a 56% decline year-on-year and coated coil with 67,000 tons, up 29% YOY, was the other finished steel products exported from Iran.
Exports of direct-reduced iron increased by 279% YOY to 698,000 tons, ISPA figures show.
Iran and India are the world’s biggest producer of DRI.
DRI, also known as sponge iron, is produced from direct reduction of iron ore in the form of lumps, pellets or fines by a reducing gas. It can be processed to create wrought iron.