Iran Steel Production Rises 5.9% to Exceed 34 Million Tons

EghtesadOnline: Iranian steelmakers produced 34.8 million tons of semis and finished steel products during the first nine months of the current Iranian year (March 21-Dec. 21) to register a 5.98% year-on-year increase.

News ID: ۷۴۹۵۷۸

01 February 2020

According to the Iranian Steel Producers Association's latest report, semi-finished steel made up 19.64 million tons of the total output, up 5% YOY, Financial Tribune reported.

Billet and bloom made up 11.6 million tons of semi-finished production while slab output hit 8.04 million tons to register an 11% rise and 2% decline respectively YOY.

As for finished steel, the output increased 7% YOY to 15.16 million tons.

Flat steel products had the lion's share of finished steel production with 7.53 million tons, up 5% YOY. HRC made up 6.25 million tons of the production in this category, registering a 3% growth YOY, followed by CRC with 1.96 million tons (up 4% YOY) and coated coil with 1.24 million tons (up 19% YOY).

Long steel products had a share of 7.62 million tons in the output of finished steel products, posting a 10% rise YOY. Rebar had a major share with 6.18 million tons (up 9% YOY), followed by beams with 822,000 tons (up 14% YOY) and L-beam, T-beam and other types with 621,000 tons (up 11% YOY).

Direct-reduced iron production stood at 21.43 million tons during the nine-month period, indicating an 8% rise YOY.

The latest report released by the World Steel Association shows Iranian steelmakers registered the third highest growth in the world in 2019.

According to Worldsteel, about 31.9 million tons of crude steel were produced in Iran in 2019 to register a 30.1% rise compared with the year before.

The growth in production comes third after Libya with 53% and Vietnam with 43.2%.

Iran's December output increased 40% year-on-year to hit 2.89 million tons, according to the Brussels-based international trade body for the iron and steel industry, to experience the second highest growth after Kazakhstan with 525%.

The report shows Iran was the world’s 10th biggest crude steel producer in 2019.

The country is placed between Brazil (ninth) with 32.23 million tons of production and Italy (11th) with 23.24 million tons.

The world’s 64 steelmakers produced a total of 1.84 billion tons of steel last year, up 3.5% YOY.

China was the world’s largest crude steel producer with 996.34 million tons of steel output, up 8.3% YOY. It was followed by India with 111.24 million tons, Japan with 99.28 million tons, the United States with 87.92 million tons, Russia with 71.57 million tons, South Korea with 71.42 million tons, Germany with 39.67 million tons and Turkey with 33.74 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 and semi-finished products (billets, blooms and slabs). This is not to be confused with liquid steel, which is steel poured.

The latest Worldsteel report also shows global direct-reduced iron output increased 2.2% year-on-year to 90.06 million tons in 2019.

Global DRI output in December stood at 7.64 million tons to register a 2.5% decline YOY.

Iran was the second biggest producer in the world with 27.73 million tons of DRI production in 2019, registering a 7.7% year-on-year growth.

Iran’s October DRI output, however, went down 1.1% year-on-year to hit 2.5 million tons.

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

India, Iran's primary rival in DRI output, increased its 12-month production by 7.7% YOY to 36.85 million tons.

The largest decrease was in Argentina, where output decreased 37.4% YOY to 1 million tons.