30% Decline in Iran's Aluminum Ingot Production Over Seven Months

Flagship producer Iran Aluminum Company accounted for 103,474 tons of the total output, posting no year-on-year change.

It was followed by Hormozal Aluminum Company with 20,972 tons, down 67% YOY; Almahdi Aluminum Company with 18,110 tons, down 56% YOY; and Iran Alumina Company with 3,740 tons.

Aluminum production during the month to Oct. 22 stood at 22,720 tons to witness a fall of 17% YOY, Financial Tribune reported.

Iran Alumina Company produced 133,217 tons of alumina powder during seven months, down 5% YOY.

Alumina powder output during the month to Oct. 22 amounted to 16,499 tons, down by 7% compared with last year’s similar period.

New Production Line to Come on Stream

South Aluminum Corporation (SALCO) located in Lamerd, capital of Lamerd County, Fars Province, will start producing 100,000 tons of aluminum ingots annually as of the next Iranian month (Nov. 22- Dec. 21).

The production capacity is expected to reach 300,000 tons per year in a subsequent phase, Shata News, affiliated with the Ministry of Industries, Mining and Trade, reported.

The ultimate production capacity is to reach 1 million tons of aluminum ingots and billets per year.

SALCO aims to become Iran’s biggest aluminum producer as well as the fourth major producer in the Middle East.

A total of 120 trillion rials ($1.06 billion) has been invested in the company, having created 1,200 jobs.

The combined nominal capacity of Iran's aluminum producers, namely Iran Aluminum Company (IRALCO) located in Arak (Markazi Province), Almahdi located in Bandar Abbas (Hormozgan Province), Hormozal also in Bandar Abbas, and newly-inaugurated Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province), stands at 468,000 tons per year.

IRALCO accounts for 175,000 tons of the total followed by Hormozal with 143,000 tons, Almahdi with 110,000 tons and Jajarm with 40,000 tons.

Iran produced 300,000 tons of aluminum in the last fiscal year (March 2018-19). Without taking into consideration Jajarm’s output, there is a gap of more than 120,000 tons between nominal and actual capacity.

Jajarm Aluminum Complex became operational in July with an investment of 17 trillion rials ($150 million), creating 400 direct and 1,600 indirect jobs.

According to Minister of Industries, Mining and Trade Reza Rahmani, Jajarm Aluminum Complex fulfils 30% of Iran’s domestic demand.

Shahriar Taherpour, a former managing director of the Industrial Development and Renovation Organization of Iran, also known as IDRO Group, says Iran’s per capita aluminum consumption has been around 4.5 kilograms over the past 10 years. 

Currently, per capita aluminum consumption in the world is about 9 kilograms.

The US and Canada are the biggest aluminum consumers in the world at present with a per capita consumption of 23 and 27 kilograms respectively.

Iran’s aluminum industry’s biggest challenge currently revolves around supplying raw materials, including alumina and petroleum coke. Not having access to raw materials due to sanctions and also having to purchase them at prices much higher than global rates are challenges facing the producers.

Connecting aluminum production units to railroad and exploring new bauxite mines in the country can help reduce costs.

Major Iranian aluminum producers' output during the first six months of the current Iranian year (March 21-Sept. 22) stood at 123,576 tons, which indicates a 32% decrease compared with last year's corresponding period, the Iranian Mines and Mining Industries Development and Renovation Organization's latest report shows.