Iran's Semi-Finished Steel Production Topped 19m Tons Last Year

EghtesadOnline: A total of 45.48 million tons of iron ore concentrate were produced in Iran in the last fiscal year (ended March 20, 2019) to register a 17% growth compared with the previous year.

News ID: ۷۴۷۱۲۴

23 April 2019

According to the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report, Golgohar Mining and Industrial Complex accounted for 15.57 million tons of the total output (up 9% YOY), followed by Chadormalu Mining and Industrial Complex with 8.88 million tons (up 4% YOY), Iran Central Iron Ore Company with 5.3 million tons (up 7% YOY), Middle East Mines and Mining Industries Development Holding Company with 5.03 million tons (up 14% YOY).

This is while Goharzamin Iron Ore Company produced 4.42 million tons (up 8% YOY), Opal Parsian Sangan 3 million tons (up 43% YOY), National Development Company 1.6 million tons (unchanged), Sabanour Mining and Industrial Development Company 1.12 million tons (unchanged) and Jalalabad Iron Ore Complex produced 523,094 tons (up 27% YOY).

Iron ore concentrate output during the last fiscal month amounted to 3.56 million tons and registered a 6% decline compared with last year’s same month, Financial Tribune reported.

Pellet output hit 41.32 million tons during the year, up 32% YOY. Golgohar was the largest producer with 11.7 million tons (up 6% YOY), followed by Mobarakeh Steel Company with 7.45 million tons (up 2% YOY), Khouzestan Steel Company with 6.31 million tons (up 3% YOY), MIDHCO with 4.94 million (up 45% YOY), Opal Parsian Sangan with 3.65 million tons (unchanged), Sangan Mineral and Industrial Company with 3.65 million tons (unchanged), Chadormalu with 3.55 million tons (up 2% YOY) and Khorasan Steel Company with 2.86 million tons (unchanged).

Pellet production witnessed a year-on-year increase during the 12th month to 3.01 million tons.

The production of direct-reduced iron stood at 25.18 million tons during the year, up 27% YOY. Mobarakeh accounted for the largest share of the output with 7.06 million tons (down 4% YOY), followed by KSC with 3.84 million tons (down 4% YOY), Golgohar with 2.08 million tons, Hormozgan Steel Company with 1.69 million tons (up 13% YOY), South Kaveh Steel Company with 1.51 million tons (down 4% YOY), Khorasan Steel Company with 1.35 million tons (up 9% YOY), Saba Steel Complex with 1.25 million tons (up 11% YOY), Arfa Steel Company with 865,974 tons (up 2% YOY) and MIDHCO with 835,651 tons (up 1% YOY).

Other major producers included Ghadir Iron and Steel Company with 835,267 tons (up 3% YOY), Sabzevar Steel Company with 704,951 tons (unchanged), Neyriz Steel Complex with 702,611 tons (unchanged), Mianeh Steel Complex with 613,625 tons (unchanged), Shadegan Steel Complex with 602,555 tons (unchanged), Sefiddasht Steel Company with 554,281 tons (up 15% YOY), Saba Steel with 539,374 tons (unchanged) and Esfahan Steel Company with 128,282 tons (down 4% YOY).

DRI production reached 2.05 million tons during the month ending March 20, indicating a 26% 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.

Downstream Output

From the above raw materials, a total of 19.31 million tons of semi-finished products such as slab, bloom, billet and ingot were produced during the 12 months, up 6% YOY.

Mobarakeh Steel Company, with its subsidiaries Saba and Hormozgan Steel, was the biggest producer with 9.02 million tons (up 4% YOY). KSC came next with 3.82 million tons (up 2% YOY), followed by ESCO with 2.26 million tons (down 1% YOY), Khorasan Steel Company with 1.04 million tons (up 23% YOY), South Kaveh Steel Company with 1.01 million tons (up 11% YOY), Chadormalu Steel Company with 880,981 tons (up 106% YOY), Arfa Iron and Steel Company with 852,885 tons (up 6% YOY) and Iran Alloy Steel Company with 416,382 tons (up 5% YOY).

During the 12th month of the Iranian year, a total of 1.48 million tons of slab, bloom, billet and ingot were produced to register a 3% decline YOY.

Moreover, 10.96 million tons of finished steel products, including hot- and cold-rolled coils, rebar, beams, pipes, wide and galvanized sheets, were produced during the 12 months, up 4% YOY.

MSC and its subsidiary Saba Steel had the largest share of production with 6.37 million tons (up 6% YOY), followed by ESCO with 2.18 million tons (unchanged), Oxin Steel Company with 605,207 tons (down 15% YOY), Khorasan Steel Company with 566,061 tons (up 7% YOY), Azarbaijan Steel Company with 359,009 tons (up 40% YOY), IASCO with 251,516 tons—240,547 tons of rebar (down 9% YOY) and 10,969 tons of “other” products (down 9% YOY).

Some of the major producers of finished steel were Ahvaz Rolling and Pipe Manufacturing Company with 309,874 tons (up 4% YOY), Chaharmahal-Bakhtiari Automotive Sheet Company with 221,840 tons (up 6% YOY) and INSIG with 97,879 tons—70,493 tons of rebar (up 9% YOY), 20,124 tons of beam (down 54% YOY) and 7,262 tons of pipes (down 11% YOY).

The production of finished steel products stood at 921,971 tons in the 12th fiscal month to see a 5% decline YOY.

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