DRI Output Rises to 20.7m Tons

EghtesadOnline: A total of 20.78 million tons of direct reduced iron were produced in Iran during the first nine months of the current Iranian year (March 21-Dec. 21, 2019), 9% more compared with last year's corresponding period, according to the Iranian Steel Producers Association's latest report.

News ID: ۷۴۹۴۳۵

13 January 2020

Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show Mobarakeh Steel Company accounted for the largest share of the output with 5.13 million tons (about a quarter of total production) to register a 6% year-on-year decline, according to Financial Tribune.

It was followed by KSC with 2.95 million tons (up 6% YOY), Golgohar with 2.11 million tons, Hormozgan Steel Company with 1.17 million tons (down 8% YOY), South Kaveh Steel Company with 1.16 million tons (unchanged YOY), Chadormalu Steel Company with 1.15 million tons, Khorasan Steel Company with 1.07 million tons (up 11% YOY), Saba Steel Complex with 931,742 tons (down 1% YOY), Sabzevar Steel Company with 586,005 tons (up 13% YOY), Arfa Steel Company with 571,638 tons (down 12% YOY) and MIDHCO with 555,112 tons (down 11% YOY).

Other major producers included Ghadir Iron and Steel Company with 551,685 tons (down 11% YOY), Sefiddasht Steel Company with 550,220 tons (up 31% YOY), Neyriz Steel Complex with 489,621 tons (down 12% YOY), Shadegan Steel Complex with 475,308 tons (down 11% YOY), Mianeh Steel Complex with 459,665 tons (down 13% YOY), Saba Steel with 397,654 tons, Baft Steel Company with 374,538 tons (up 476% YOY) and Esfahan Steel Company with 66,252 tons (down 48% YOY).

DRI production reached 2.43 million tons during the month ending Dec. 21, indicating 14% increase YOY.

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 the first 10 months of 2019 (January-October).

Iran’s October DRI output grew 3.3% year-on-year to hit 2.48 million tons.

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

11m Tons/Year in Production Capacity to Be Added by March 2024

Another report released by the Iranian Mines and Mining Industries Development and Renovation Organization on completion of under-construction direct-reduced iron production units shows 11 million tons are expected to be added to Iran’s direct-reduced iron production capacity by the time the construction of all these units is complete in the fiscal 2023-24.

According to the report, which surveys the physical progress of aforementioned units as of Nov. 21, 2019, Damghan Steel Company located in Damghan County, Semnan Province, will have a production capacity of 120,000 tons per year upon completion. The unit has made 99% progress and it is expected to become operational by the end of the current Iranian year (March 19, 2020).

Ardakan Steel Complex Company in Yazd Province will have a production capacity of 960,000 tons per year upon completion. The progress of the unit is at 90% and it is also expected to come on stream by the current fiscal yearend (March 19, 2020).

Kavir Steel Company, located in Ardestan, capital of Ardestan County, Isfahan Province, will have a production capacity of 90,000 tons per year upon completion. With a 92% physical progress, it is also expected to be launched by March 2020.

Pasargad Steel Complex in Shiraz, the capital of Fars Province, will add 1.8 million tons to the capacity. It has made 95% progress and the same operational deadline has been set for this unit.

Located in Qaen County, South Khorasan Province, Ghaenat Steel Company will have 800,000 tons per year of production capacity. The unit’s progress has reached 88% and it is expected to become operational by the end of the next Iranian year (March 2021).

Iran Ghaltak Company has made 60% progress and its production capacity will hit 70,000 tons per year. Located in Isfahan province, the project is expected to be launched by the end of the next Iranian year.

Bafgh Iron & Steel Company, located in Yazd Province, is slated to become operational in fiscal March 2021-22. It will have the capacity to produce 800,000 tons of DRI per year and has made 63% progress.

Kavand Nahan Zamin, located in Kerman Province, has made 50% progress. It will have an annual production capacity of 0.5 million tons by the end of the fiscal 2021-22.

Also coming on stream in the fiscal 2021-22, Behnavard Steel Complex in Yazd has made 41% progress. Its annual production capacity will reach 500,000 million tons upon completion.

The development of Butia Iranian Steel Company in Kerman will add 1.8 million tons to the capacity of Iran's DRI production. It has made 28% progress and is expected to be inaugurated in the fiscal 2022-23.

In the same year, Bisotoun Steel Company located in Harsin, the capital of Harsin County, Kermanshah Province, is also expected to be completed. As of Nov. 21, 2019, the project made 44% progress. The production capacity of this unit will reach 150,000 tons per year.

The first phase of Makran DRI Plant in Chabahar, capital of Chabahar County, Sistan-Baluchestan Province, is due to be completed in the fiscal 2023-24 similar to Torbat Steel Complex in Torbat-e Heydarieh, Khorasan Razavi Province. The former has made 17% physical progress and will add 1.6 million tons to the annual capacity of Iran's DRI production, while the latter has made 15% progress and its annual capacity will hit 1.8 million tons upon completion.