Aluminum Exports Rise 56% to Over $100 Million in 7 Months

EghtesadOnline: Iran exported 61,147 tons of aluminum worth $101 million in the seven months to Oct. 21.

News ID: ۷۵۱۶۷۶

09 December 2020

According to data released by the Islamic Republic of Iran Customs Administration, the figures indicate an 84% and 56% rise in terms of tonnage and value respectively in comparison with the corresponding period of last year, Mehr News Agency reported.

The IRICA data show that the country imported 102,091 tons of aluminum products worth $154 million during the same period, registering a 102% and 11% rise in volume and value respectively year-on-year.

Iran’s total mineral exports reached 21.17 million tons worth $3.49 billion during the period, which constitutes 16.7% of the country’s total non-oil exports.

Iranian aluminum producers had an aggregate output of 247,335 tons of ingots during the first seven months of the current Iranian year (March 20-Oct. 21) to register an 89% rise compared with the corresponding period of last year.

According to IMIDRO, flagship producer Iran Aluminum Company (IRALCO) accounted for the highest volume of the total output with 109,302 tons, up 8% year-on-year.

IRALCO is the top producer of aluminum in Iran. Inaugurated in 1972, the plant has an annual production capacity of 180,000.

It was followed by Hormozal Aluminum Company with 53,375 tons, up 155% YOY; Almahdi Aluminum Company with 39,079 tons, up 116% YOY; South Aluminum Company (SALCO) with 32,142 tons and Iran Alumina Company with 13,438 tons.

The overall output during the month ending Oct. 21 amounted to 35,556 tons, indicating a 56% rise YOY.

Iran Alumina Company produced 139,307 tons of alumina powder during the seven-month period, up 4% compared with the similar period of last year.

Iranian aluminum producers had an aggregate output of 275,716 tons of aluminum ingots during the last Iranian year that ended on March 19, 2020, to register an 8% decrease compared with the year before.

According to Shahriar Taherpour, a former managing director of IMIDRO, Iran’s per capita aluminum consumption has been around 4.5 kilograms over the past 10 years against 9 kilograms in the world.

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

The Iranian aluminum industry’s biggest challenge currently revolves around supplying raw materials, including alumina and petroleum coke. Not having access to raw materials due to sanctions and also having to purchase them at prices much higher than global rates are issues facing producers.

Plans are underway to connect aluminum production units to railroads and explore new bauxite mines to reduce costs.

Iran’s aluminum production capacity is projected to reach 1.3 million tons per year, once several ongoing projects become operational.

New Plant Boosts Production

South Aluminum Corporation, located in the city of Lamerd, Fars Province, was inaugurated in April.

According to former industries minister, Reza Rahmani, the project will boost Iran’s aluminum production capacity to 785,000 tons per year, once all its development phases come on stream.

“The factory has come with a price tag of more than $1.2 billion,” he had said at the inaugural ceremony.

"Cutting-edge technology has been incorporated into the project and the development of the project is in line with environmental concerns."

Once fully operational, SALCO will create 6,500 direct and indirect jobs, Fars News Agency reported.

The company’s shares are owned by two companies: Ghadir Investment Company owns 51% and IMIDRO owns the rest.

The factory is set to produce a range of aluminum products, including sheets, profiles, ingots, doors, windows, composites, nuts and bolts.

SALCO’s initial production will reach 100,000 tons of aluminum ingots per year. The annual production capacity is expected to reach 300,000 tons in a subsequent phase. The final production capacity is to reach 1 million tons of aluminum ingots and billets per year.

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

The combined nominal capacity of IRALCO located in Arak (Markazi Province), Almahdi Aluminum Company located in Bandar Abbas (Hormozgan Province), Hormozal Aluminum Company also in Bandar Abbas and Jajarm Aluminum Complex located in Jajarm County (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.