46% Rise in Iran's Aluminum Ingot Output

Flagship producer Iran Aluminum Company (IRALCO) accounted for 16,148 tons of the total output, posting a 6% growth year-on-year.

It was followed by Hormozal Aluminum Company with 6,809 tons, up 159% YOY; Almahdi Aluminum Company with 5,440 tons, up 118% YOY; and Iran Alumina Company with 1,633 tons (no data on YOY changes).

Iran Alumina Company produced 20,899 tons of alumina powder during month, up 14% YOY.

South Aluminum Corporation (SALCO) located in the city of Lamerd, Fars Province, was inaugurated last month.

According to Industries Minister Reza Rahmani, the project will boost Iran’s aluminum production capacity to 785,000 tons per year once all its development phases come on stream. 

“The factory has come with a price tag of more than $1.2 billion,” he said at the inaugural ceremony.

"Cutting-edge technology has been incorporated into the project and the development of the project is in line with environmental concerns. Once fully operational, SALCO will create a total of 6,500 direct and indirect jobs.”

The company’s shares are owned by two companies: Ghadir Investment Company owns 51% and the Iranian Mines and Mining Industries Development and Renovation Organization owns the rest.

The factory is set to produce a range of aluminum products, including sheets, profiles, ingots, doors, windows and composites, as well as nuts and bolts.

Rahmani told IRIB News that Iran is currently the world’s 18th biggest aluminum producer and with the opening of this project as well as Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province), which came on stream a few months ago, the ranking will ascend to the 14th place.

Jajarm Aluminum Complex became operational in July 2019 with an investment of about $150 million, creating 400 direct and 1,600 indirect jobs.

SALCO will start the production of 100,000 tons of aluminum ingots per year. The production capacity is expected to reach 300,000 tons per year in a subsequent phase. The ultimate production capacity is to reach 1 million tons of aluminum ingots and billets per year.

SALCO is looking to become Iran’s biggest aluminum producer and the fourth major producer in the Middle East.

Iranian aluminum producers had an aggregate output of 275,716 tons of aluminum ingots during the past Iranian year that ended on March 19, 2020, which indicates an 8% decrease compared with last year's corresponding period, IMIDRO's latest report shows.

The combined nominal capacity of IRALCO located in Arak (Markazi Province), Almahdi Aluminum Company located in Bandar Abbas (Hormozgan Province), Hormozal Aluminum Company also in Bandar Abbas, and 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.

Shahriar Taherpour, a former managing director of the Industrial Development and Renovation Organization of Iran, 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 with per capita 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 the issues facing producers.

Connecting aluminum production units to the rail network and exploring new bauxite mines in the country can help reduce costs in this industry.