Iran Remains World's 10th Biggest Steel Producer YOY

EghtesadOnline: Iranian steel mills produced a total of 23.64 million tons of crude steel during the first 11 months of 2019 (January to November), which indicate a 5.3% rise compared with the corresponding period of 2018, the latest report released by the World Steel Association shows.

News ID: ۷۴۹۲۶۶

23 December 2019

The country's November output declined by 2.6% year-on-year to hit 2.13 million tons, according to the Brussels-based international iron and steel trade body.

However, Iran’s world ranking remains unchanged compared to Worldsteel's previous monthly report: the world’s 10th biggest crude steel producer, Financial Tribune reported.

The country is placed between Brazil (ninth) with 29.82 million tons of production and Italy (11th) with 21.81 million tons, the new report shows.

The world’s 64 steelmakers produced a total of 1.68 billion tons of steel over the period, up 2.7% YOY.

Global steel output stood at 147.79 million tons in November, indicating a 1% decrease YOY.

China was the world’s largest crude steel producer with 904.17 million tons of steel output, up 7% YOY.

China was followed by India with 101.95 million tons, Japan with 91.52 million tons, the United States with 80.61 million tons, South Korea with 66.03 million tons, Russia with 65.57 million tons, Germany with 37.09 million tons and Turkey with 30.85 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, semi-finished products (billets, blooms and slabs). This is not to be confused with liquid steel, which is steel poured.

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 has been working 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 an export-oriented one that exports more than 40% of its steel output.

According to the Iranian Steel Producers Association's latest report, Iranian steelmakers produced an aggregate of 30.98 million tons of semis and finished steel products from March 21 to Nov. 21 to register a 5.82% year-on-year increase.

Semi-finished steel made up 17.42 million tons of the total output, up 5% YOY. As for finished steel, the output increased 7% YOY to 13.55 million tons.

Latest data released by IMIDRO show heavyweight Iranian steelmakers exported a total of 4.72 million tons during the eight months to register a year-on-year growth of 15%.

They shipped out 673,772 tons during the eighth month of the year, which shows an 83% increase compared with the same month of the year before.

Overall steel export volume from Iran during the period under review is more than the abovementioned figures. ISPA is expected to release its own report on steel exports from Iran during the eight months, including exports by small-scale producers.

With a total of 1.26 million tons of exports during the first eight months of the current Iranian year (March 21-Nov. 21) and 182,483 tons in the eighth month (Oct. 23-Nov. 21), Khouzestan Steel Company was Iran's biggest exporter.

The mill experienced a year-on-year decline of 17% in exports during the eight months and 1% in the eighth month under review.

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

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