Iran's Steel Production Capacity Projected to Top 43m Tons

EghtesadOnline: Iran’s steel production capacity is expected to reach 43.6 million tons by the end of the next Iranian year (March 20, 2021), while the actual production is estimated to hit 31.1 million tons by utilizing 71% of the nominal capacity.

News ID: ۷۴۹۳۹۹

08 January 2020

The Iranian Mines and Mining Industries Development and Renovation Organization announced the above in a new report.

IMIDRO also expects direct-reduced iron production capacity to reach 37.2 million tons by the end of next Iranian year, while the actual production is estimated to reach 33.6 million tons by utilizing 90% of the nameplate capacity, according to Financial Tribune.

Pellet production capacity is expected to reach 66.4 million tons, as actual production is predicted to reach 55.3 million tons by using 83% of the capacity.

Concentrate production capacity is estimated to hit 68.5 million tons, while actual production would reach 58.1 million tons by realizing 85% of the capacity by March 20, 2021.

Current Steel Production Capacity at 35m Tons p.a.

Iran's current steel production capacity stands at 35 million tons per annum, Deputy Minister of Industries, Mining and Trade Jafar Sarqeini said recently.

According to the official, several steel units with an overall capacity of 10 million tons are currently under construction with a more than 50% physical progress, while another 10 million tons of capacity have been defined.

“All these efforts are aimed at reaching the target of 55 million tons of steel in the 20-year Vision Plan [by 2025]. For the past three to four years, steel production growth in Iran has always been higher than the global average,” Sarqeini was quoted as saying by Fars News Agency.

“Steel exports will exceed 11 million tons this year, up 30% from 8.5 million tons last year," he added.

According to the Iranian Steel Producers Association's latest report, steel production in Iran stood at more than 30.98 million tons during the eight months 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.

Billet and bloom made up 10.25 million tons of semi-finished production while slab output hit 7.17 million tons to register an 11% rise and a 3% decline respectively YOY.

As for finished steel, the output increased 7% YOY to 13.55 million tons.

Flat steel products had the lion's share of finished steel production with 6.8 million tons, up 4% YOY. HRC made up 5.71 million tons of the production in this category, registering a 3% growth YOY, followed by CRC with 1.71 million tons (up 4% YOY) and coated coil with 1.09 million tons (up 20% YOY).

Long steel products had a 6.75-million-ton share in the output of finished steel products, posting a 9% rise YOY. Rebar had a major share with 5.45 million tons (up 9% YOY), followed by beams with 740,000 tons (up 22% YOY) and L-beam, T-beam and other types with 556,000 tons (up 9% YOY).

Iran is the world's 10th biggest steel producer and the second biggest producer of sponge iron after India, according to World Steel Association.

According to World Steel Association's latest data, Iran is the 10th biggest producer of steel in the world. Worldsteel's latest report shows the country produced a total of 21.51 million tons of crude steel during the 10 months of 2019 (January to October), up 6.2% compared with the corresponding period of 2018.

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

Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) show major Iranian steelmakers exported 4.72 million tons during the same eight months by ISPA to register a year-on-year growth of 15%.

ISPA is expected to release a more comprehensive report on Iran's steel exports soon, which will also include data for small-scale steel mills.

Sangan Iron Ore Mines to Expand Capacity

Iran's major iron ore production complex, Sangan, located in Iran's northeastern Khorasan Razavi near the Afghan border, currently has the capacity to produce 10 million tons of pellets and 5.1 million tons of iron ore concentrates per year.

Abbas Naeimi, the deputy head of IMIDRO, said the iron ore complex plans to add 2.5 million tons to its pellet and 5 million tons to its iron ore concentrate production capacities by the end of the current Iranian year (March 19, 2020).

In other words, with the implementation of development plans, Sangan’s pellet and iron ore concentrate production capacities will increase to 12.5 and 10.1 million tons by the fiscal yearend.

Naeimi noted that the complex is pursuing plans to increase its pellet production capacity to 15 million tons and iron ore concentrate production to 17.5 million tons in the long run, IMIDRO reported on its website.

According to the official, Sangan’s iron ore concentrate and pellet development plans have attracted $1 billion worth of investment to date.

Latest ISPA data indicate a total of 31.54 million tons of iron ore concentrates were produced in Iran during the eight months to Nov. 21 to register a 4% growth compared with the corresponding period of the year before.

Pellet output hit 27.73 million tons during the eight months, remaining unchanged YOY.

A total of 18.55 million tons of direct reduced iron were produced in the country during the same period, 7% more compared with last year's corresponding period.

Iran is the world's second biggest producer of DRI after India.

According to the World Steel Association's latest report, 24 million tons of DRI were produced in Iran during January-October.

India, Iran's primary rival in DRI output, increased its 10-month production by 6.1% YOY to 30.05 million tons.