Iran's Aluminum Ingot Output Declines 21%

EghtesadOnline: Iranian aluminum producers had an aggregate output of 196,329 tons of aluminum ingots during the first nine months of the current Iranian year (March 21-Dec. 21), which indicates a 21% decline compared with last year's corresponding period, the Iranian Mines and Mining Industries Development and Renovation Organization's latest report shows.

News ID: ۷۴۹۴۴۶

14 January 2020

Flagship producer Iran Aluminum Company (IRALCO) accounted for 132,693 tons of the total output, posting a 1% growth year-on-year.

It was followed by Hormozal Aluminum Company with 29,858 tons, down 58% YOY; Almahdi Aluminum Company with 28,127 tons, down 40% YOY; and Iran Alumina Company with 5,651 tons (no data on YOY changes), Financial Tribune reported.

Aluminum production during the month ending Dec. 21 stood at 24,995 tons to witness a rise of 39% YOY.

Iran Alumina Company produced 171,728 tons of alumina powder during the period, down 2% YOY.

Alumina powder output during the month to December 21 amounted to 24,995 tons, up by 39% year-on-year.

Major Players

South Aluminum Corporation (SALCO) located in Lamerd, capital of Lamerd County in Fars Province, is expected to soon start production of 100,000 tons of aluminum ingots per year.

The production capacity is expected to reach 300,000 tons per year in a subsequent phase.

It aims to reach a production capacity of 1 million tons of aluminum ingots and billets per year.

SALCO intends to become Iran’s biggest aluminum producer and the fourth major producer in the Middle East.

A total of $1 billion have been invested in the company, which created 1,200 jobs.

The combined nominal capacity of Iran's aluminum producers, namely IRALCO in Arak (Markazi Province), Almahdi in Bandar Abbas (Hormozgan Province), Hormozal in Bandar Abbas and the newly-inaugurated Jajarm Aluminum Complex in Jajarm County of North Khorasan Province, stands at 468,000 tons per year.

IRALCO accounts for 175,000 tons of the total, followed by Hormozal with 143,000 tons, Almahdi with 110,000 tons and Jajarm with 40,000 tons.

Iran produced 300,000 tons of aluminum in the last fiscal year (March 2018-19). Without taking into consideration Jajarm’s output, there is a gap of more than 120,000 tons between nominal and actual capacity.

Jajarm Aluminum Complex became operational in July 2019 with an investment of about $150 million, creating 400 direct and 1,600 indirect jobs.

According to Minister of Industries, Mining and Trade Reza Rahmani, Jajarm Aluminum Complex meets 30% of Iran’s domestic demand,

Currently, per capita aluminum consumption in the world is about 9 kilograms.

The US and Canada are the biggest aluminum consumers in the world with a per capita consumption of 23 and 27 kilograms respectively.

The Iranian aluminum industry’s biggest challenge revolves around the supply of raw materials, including alumina and petroleum coke. Not having access to raw materials due to sanctions and compelled to purchase them at prices much higher than the global rates are the main problems facing steelmakers.

Connecting aluminum production units to railroads and exploring new bauxite mines in the country can help reduce costs in this industry.

The Iranian Mines & Mining Industries Development & Renovation and Khatam al-Anbiya Construction Headquarters signed an agreement recently to establish an alumina production unit with a capacity of 70,000 tons in Sarab County, East Azarbaijan Province.

According to IMIDRO Chairman Khodadad Gharibpour, the organization will invest €137 million in the project, ILNA reported.

Aluminum oxide is commonly called alumina and may also be called aloxide, aloxite, or alundum depending on particular forms or applications. It occurs naturally in its crystalline polymorphic state.

Al2O3 is significant in its use to produce aluminum metal, as an abrasive owing to its hardness and as a refractory material owing to its high melting point.