Iran's Steel Output Surges; World Steel Association's Jan-June Report Shows

EghtesadOnline: Iranian steel mills produced a total of 12.78 million tons of crude steel during the first half of 2019, which indicates a 5.6% rise compared with the corresponding period of 2018, the latest report released by the World Steel Association shows.

News ID: ۷۴۷۹۸۳

27 July 2019

The country's June output increased by 6.1% year-on-year to hit 2.16 million tons, according to the Brussels-based international trade body for the iron and steel industry.

Iran remains the world’s 10th biggest crude steel producer—unchanged compared to the previous monthly report.

The country is placed between Brazil (ninth) with 16.68 million tons and Italy (11th) with 12.56 million tons, according to Financial Tribune.

The world’s 64 steelmakers produced a total of 924.99 million tons of steel over the six months, up 4.9% YOY.

Global steel output stood at 159.28 million tons in June, indicating a 4.8% increase YOY.

China was the world’s largest crude steel producer with 492.16 million tons of steel output, up 9.9% YOY.

It was followed by India with 56.95 million tons, Japan with 51.08 million tons, the United States with 44.34 million tons, South Korea with 36.89 million tons, Russia with 35.75 million tons, Germany with 20.71 million tons, and Turkey with 16.99 million tons.

Iran’s crude steel output stood at 24.52 million tons in 2018, according to Worldsteel, up 17.7% YOY.

Crude steel is defined as steel in its first solid (or usable) form: ingots and semi-finished products (billets, blooms and slabs). This is not to be confused with liquid steel, which is steel poured.

The latest Worldsteel report shows global direct-reduced iron output increased 6.3% year-on-year to 44.61 million tons during the six months to June 30.

Global DRI output in June stood at 7.44 million tons to register a 9.1% growth YOY.

Production for 2018 grew 11.6% year-over-year to 84.3 million tons.

Iran was the second biggest DRI producer in the world with 14.17 million tons during the first half of 2019 to register a 15.2% year-on-year growth.

Iran’s June DRI output grew 16.3% year-on-year to hit 2.39 million tons.

The country produced a total of 25.54 million tons of DRI in 2018, up 31.6% YOY.

India, Iran's primary rival in DRI output, increased its six-month production by 6% YOY to 16.71 million tons.

The largest decrease was in Argentina where output decreased 33.3% YOY to 591,000 tons.

Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 million tons and 20-25 million tons of exports per year by 2025. Iranian steel mills have so far realized 34 million tons of the capacity target.

The country is making efforts to increase its iron ore processing capacity, including both DRI and hot-briquetted iron production, to feed its steelmaking expansion target.

According to Chairman of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Khodadad Gharibpour, Iranian steel industry is export-oriented such that the country exports more than 40% of its steel productions.

10m Tons p.a. to Be Added to Steelmaking Capacity

An agreement to increase Iran's annual steel production capacity by 10 million tons by establishing a steel mill in the Persian Gulf Special Economic Zone in the form of a consortium was signed earlier this month at IMIDRO.

The consortium consists of seven companies, namely IMIDRO, National Iranian Steel Company, the Civil Servants Pension Organization, South Kaveh Steel Company, Golgohar Mining and Industrial Company, Maad Koush Company and Persian Gulf Saba Steel Company.

Governor of Hormozgan Province Fereydoun Hemmati and IMIDRO’s Chairman Khodadad Gharibpour were present at the signing ceremony, IRNA reported.

Gharibpour told IRIB News that the development of the project will take five years with an investment of $5 billion and create 10,000 jobs.

The Persian Gulf Special Economic, Mining Industries and Metal Zone is located 13 km west of the city of the southern port city of Bandar Abbas.

Gharibpour noted that IMIDRO has taken the full responsibility of providing the water and electricity required for the project.

Based on estimates, the project needs 18 million tons of pellet and 11.9 million tons of direct-reduced iron per year.