Worldsteel: Iran’s Steel Output Increases by 12.7% in 11 Months

EghtesadOnline: Iranian steel mills produced a total of 26.36 million tons of crude steel during the first 11 months of 2020, which indicate a 12.76% rise compared with the corresponding period of 2019, the latest report released by the World Steel Association shows.

News ID: ۷۵۱۷۴۷

29 December 2020

Iran ranked the world’s 11th biggest crude steel producer — one spot lower than its previous position — and was placed between Vietnam (10th) with 26.7 million tons and Taiwan (12th) with 18.7 million tons.

Vietnam posted a 44% growth in crude steel output during the period under review, higher than other major steel producers, becoming the world’s 10th largest producer of crude steel.

Iran and China came next, with 12.76% and 5.7% increase in 11-month output respectively, followed by Turkey with a 4% growth. This is while growth was negative for the remaining major steel producers.

The closure of businesses and disruption in industrial operations as a result of Covid-19, which spread in early 2020, was among key factors causing a drop in the output of countries ranked above Iran during the 11-month period.

Iran's November output also increased by 14.15% year-on-year to hit 2.57 million tons, according to the Brussels-based international trade body for the iron and steel industry.

World Steel Association is one of the largest and most dynamic industry associations in the world, with members in every major steel-producing country. Worldsteel represents steel producers, national and regional steel industry associations and steel research institutes. Members represent around 85% of global steel production.

Global crude steel production by the 64 countries reporting to the World Steel Association was 158.3 million tons in November 2020, a 6.6% increase compared to November 2019.

During the first 11 months of 2020, China remained the world’s largest crude steel producer with 963.17 million tons, up 5.7% YOY, while its November output amounted to 87.65 million tons, up 7.9%.

It was followed by India with 89.39 million tons, Japan with 75.6 million tons, the United States with 66 million tons, Russia with 65.1 million tons, South Korea with 60.79 million tons, Germany with 32.5 million tons and Turkey with 32.3 million tons.

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.

Production Capacity Nears 40m Tons

The aggregate annual capacity of Iranian steel companies has reached 39.82 million tons, according to new data released by the Iranian Mines and Mining Industries Development and Renovation Organization.

Presently, there are 84 steel mills in Iran.

Mobarakeh Steel Company, Iran’s biggest steelmaker, accounts for 18% of the total production capacity with 7.2 million tons per year.

Khuzestan Steel Company comes next with 3.8 million tons followed by Esfahan Steel Company with 3.6 million tons and South Kaveh Steel Company with 2.4 million tons.

As per the goals set in the 20-Year National Vision Plan (2005-25), Iran seeks to become the world’s sixth largest steelmaker by 2025 with a crude steel output capacity of 55 million tons.

According to Iranian Mines and Mining Industries Development and Renovation Organization, Iran’s steel production capacity is expected to reach 43.6 million tons by the end of the current Iranian year (March 20, 2021), while actual production is estimated to hit 31.1 million tons by utilizing 71% of the nominal capacity.

IMIDRO is a state-run enterprise and Iran's biggest holding company active in the mining sector.