Iran's Semi-Finished Steel Production Tops 16m Tons in 10 Months

EghtesadOnline: A total of 38.16 million tons of iron ore concentrate were produced in Iran during the 10 months to Jan. 20 to register a 21% growth compared with last year's similar period.

News ID: ۷۴۶۷۰۰

16 February 2019

According to the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report, Golgohar Mining and Industrial Complex accounted for 13.15 million tons of the total output (up 14% YOY), followed by Chadormalu Mining and Industrial Complex with 7.55 million tons (up 7% YOY), Iran Central Iron Ore Company with 4.45 million tons (up 8% YOY) and Middle East Mines and Mining Industries Development Holding Company with 4.2 million tons (up 26% YOY).

Other major producers included Goharzamin Iron Ore Company with 3.65 million tons (up 7% YOY), Opal Parsian Sangan with 2.48 million tons (up 45% YOY), National Iranian Steel Company with 1.24 million tons (unchanged) and Jalalabad Iron Ore Complex with 433,591 tons (up 42% YOY).

Iron ore concentrate output during the tenth calendar month ending Jan. 20 amounted to 3.85 million tons to register a 15% rise compared with last year’s same month, according to Financial Tribune.

Pellet output hit 34.82 million tons during the 10 months, up 32% YOY. Golgohar was the largest producer with 10.05 million tons (up 10% YOY), followed by Mobarakeh Steel Company with 6.34 million tons (unchanged), Khouzestan Steel Company with 5.26 million tons (down 2% YOY) and MIDHCO with 4.18 million (up 56% YOY).

Other key producers included Opal Parsian Sangan with 3.12 million tons (unchanged), Chadormalu with 2.95 million tons (up 2% YOY), Sangan Mineral and Industrial Company with 3.12 million tons (unchanged) and Khorasan Steel Company with 579,506 tons (unchanged).

Pellet production witnessed a 30% year-on-year increase during the tenth month to 3.67 million tons.

Production of direct-reduced iron stood at 21.13 million tons during the 10 months, up 27% YOY. Mobarakeh accounted for the largest share of the output with 5.95 million tons (down 3% YOY), followed by KSC with 3.14 million tons (down 8% YOY), Hormozgan Steel Company with 1.42 million tons (up 10% YOY), South Kaveh Steel Company with 1.32 million tons (up 3% YOY), Golgohar with 1.69 million tons (unchanged), Khorasan Steel Company with 1.1 million tons (up 8% YOY) and Saba Steel Complex with 1.05 million tons (up 13% YOY).

Other major producers included Arfa Steel Company with 727,038 tons (up 2% YOY), Ghadir Iron, and Steel Company with 695,865 tons (up 2% YOY), MIDHCO with 694,909 tons (up 1% YOY), Neyriz Steel Complex with 616,705 tons (unchanged), Mianeh Steel Complex with 543,147 tons (unchanged), Shadegan Steel Complex with 595,855 tons (unchanged), Sabzevar Steel Company with 580,313 tons (unchanged), Sefiddasht Steel Company with 468,164 tons (up 32% YOY), Saba Steel with 369,610 tons (unchanged) and Esfahan Steel Company with 128,196 tons (up 8% YOY).

DRI production reached 2.14 million tons during the month ending Jan. 20, indicating a 29% growth YOY.

Iran is the second biggest producer of DRI in the world after India. According to World Steel Association, the country produced 25.54 million tons of DRI in 2018.

India's output stood at 30.36 million tons last year.

Downstream Output

From the above raw materials, a total of 16.28 million tons of semis, including slab, bloom, billet and ingot, were produced during the 10-month period, up 9% YOY.

Mobarakeh Steel Company, with its subsidiaries Saba and Hormozgan Steel, was the biggest producer with 7.7 million tons (up 7% YOY).

KSC followed with 3.16 million tons (up 1% YOY), followed by ESCO with 1.89 million tons (unchanged YOY), South Kaveh Steel Company with 860,717 tons (up 16% YOY), Khorasan Steel Company with 853,875 tons (up 26% YOY), Chadormalu Steel Company with 743,061 tons (up 154% YOY), Arfa Iron and Steel Company with 713,400 tons (up 8% YOY) and Iran Alloy Steel Company with 351,682 tons (up 3% YOY).

In the tenth month of the current Iranian year, a total of 1.54 million tons of slab, bloom, billet and ingot were produced to register a 6% decline YOY.

A total of 9.1 million tons of finished steel products, including hot- and cold-rolled coils, rebar, beams, pipes and galvanized sheets were produced during the 10 months, up 3% YOY.

MSC and its subsidiary Saba Steel had the largest share of production with 5.29 million tons (up 6% YOY), followed by ESCO with 1.82 million tons (up 1% YOY), Oxin Steel Company with 521,656 tons (down 14% YOY), Khorasan Steel Company with 471,220 tons (up 8% YOY), Azarbaijan Steel Company with 292,395 tons (up 46% YOY)and IASCO with 210,583 tons—200,657 tons of rebar (down 13% YOY) and 9,926 tons of ‘other’ products (up 21% YOY).

Other top producers were Ahvaz Rolling and Pipe Manufacturing Company with 239,874 tons (down 7% YOY), Chaharmahal-Bakhtiari Automotive Sheet Company with 189,423 tons (up 10% YOY) and INSIG with 51,391 tons, including 40,472 tons of rebar (down 37% YOY), 6,068 tons of beam (down 84% YOY) and 4,851 tons of pipes (down 33% YOY).

Production of finished steel products stood at 792,934 tons in the tenth calendar month to register a 12% decline YOY.

Currently, Iran’s steel production capacity stands at 34 million tons per year, according to Deputy Minister of Industries, Mining and Trade Jafar Sarqeini.