Iran Steel Output Tops 26m Tons

EghtesadOnline: Iranian steelmakers produced 26.92 million tons of semis and finished steel products during the first seven months of the current Iranian year (March 21-Oct. 22) to register a 5.95% year-on-year increase.

News ID: ۷۴۹۱۳۷

09 December 2019

According to the Iranian Steel Producers Association's latest report, semi-finished steel made up 15.16 million tons of the total output, up 5% YOY.

Billet and bloom made up 8.87 million tons of semi-finished production while slab output hit 6.29 million tons to register an 11% rise and 3% decline respectively YOY.

As for finished steel, the output increased 7% YOY to 11.75 million tons, Financial Tribune reported.

Flat steel products had the lion's share of finished steel production with 6.07 million tons, up 7% YOY. HRC made up 5.07 million tons of the production in this category, registering a 4% growth YOY, followed by CRC with 1.5 million tons (up 6% YOY) and coated coil with 975,000 tons (up 24% YOY).

Long steel products had a 5.68-million-ton share in the output of finished steel products, posting an 8% rise YOY. Rebar had a major share with 4.57 million tons (up 6% YOY), followed by beams with 625,000 tons (up 27% YOY) and L-beam, T-beam and other types with 486,000 tons (up 6% YOY).

Direct-reduced iron production stood at 16.25 million tons during the seven-month period, indicating a 7% rise YOY.

Steel Heavyweights' Exports

With more than 1.08 million tons of exports during the seven months and 82,296 tons in the seventh month (Sept. 23-Oct. 22), Khouzestan Steel Company was Iran's biggest exporter of steel during the period.

The mill experienced a year-on-year decline of 19% in export during the seven months and 42% in the seventh month, latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show.

The steelmaker, located in the southwestern Khuzestan Province, exports to over a dozen countries.

About half of KSC's exports go to the Middle East and North Africa region. Its other major export destinations are located in the Far East and the Americas.

Mobarakeh Steel Company, located in Isfahan, was the second biggest exporter as it shipped out 885,397 tons of products during the seven months under review, up 23% compared with last year's corresponding period.

The company is the largest steelmaker in the Middle East and North Africa region, and one of the largest industrial complexes operating in Iran.

During the seventh month of the current Iranian year, MSC exported 132,512 tons to register a 145% growth YOY.

Esfahan Steel Company (ESCO) ranked third, as it exported 681,868 tons during the seven months, up 12% compared with last year's corresponding period.

During the month to Oct. 22, ESCO exported 114,653 tons to register a YOY increase of 193%.

Most of the other producers registered growth during the seven months.

South Kaveh Steel Company exported 465,600 tons of billets, up 29% YOY. The company also exported 62,560 tons of direct-reduced iron in the seven months.

Hormozgan Steel Company exported 453,049 tons of slabs, down 1% YOY.

Khorasan Steel Company shipped out 167,275 tons of bloom, indicating an 85% growth YOY. In addition, the company exported 6,925 tons of rebar, down 87% YOY.

Chadormalou Mining and Industrial Company exported 129,507 tons of billet during the seven months.

Saba Steel Company exported 50,842 tons of hot briquettes, up 71% YOY.

Iran Alloy Steel Company shipped out 36,488 tons of rebar, down 1% YOY.

Bonab Steel Company exported 26,240 tons of rebar, up 1,533% YOY, while the company exported 449 tons of “other” products during the period.

From the seventh month perspective, the highest growth was registered by Iran Alloy Steel Company that exported 5,940 tons of rebar during the month, up by 546% YOY.

The above steelmakers, considered major Iranian producers, exported 4.04 million tons during the seven months to register a year-on-year growth of 8%.

They shipped out 561,007 tons during the seventh month of the year, which shows a 54% increase compared with the same month of the year before.

Iran Steel Producers Association will release a more comprehensive report on Iran's steel exports in a few days, including data for small-scale steel mills.

The above-mentioned steelmakers exported a total of 5.54 million tons of steel during the last Iranian year (ended March 20, 2019) to register a YOY decline of 25%.

With more than 2.18 million tons of exports over the 12 months, Khouzestan Steel Company was Iran's biggest exporter of steel last year.

According to World Steel Association's latest data, Iran is the 10th biggest producer of steel in the world, as it produced a total of 21.5 million tons of crude steel during the 10 months of 2019, up 6.2% compared with the corresponding period of 2018.

Iran is aggressively pursuing the target of becoming 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 about 34 million tons of the capacity target.

According to Deputy Industries Minister and Chairman of Board of Iranian Mines and Mining Industries Development and Renovation Khodadad Gharibpour, Iranian steel industry is an export-oriented one that exports more than 40% of its steel output.