Iran's DRI Production Rises 8% to 16m Tons in Seven Months

EghtesadOnline: Iran’s major steel mills produced 16.01 million tons of direct reduced iron during the first seven months of the current Iranian year (March 21-October 22) to register an 8% rise compared with last year's corresponding period.

News ID: ۷۸۵۰۱۹

16 November 2019

The data were released in the latest report of the Iranian Mines and Mining Industries Development and Renovation Organization.

Mobarakeh accounted for the largest share of the output with 4.05 million tons (down 6% YOY), followed by KSC with 2.33 million tons (up 7% YOY), Golgohar with 1.6 million tons, Hormozgan Steel Company with 950,736 tons (down 5% YOY), South Kaveh Steel Company with 885,034 tons (unchanged YOY), Chadormalu Steel Company with 877,782 tons, Khorasan Steel Company with 815,308 million tons (up 5% YOY), Saba Steel Complex with 689,689 tons (down 2% YOY), Arfa Steel Company with 435,337 tons (down 17% YOY) and Ghadir Iron and Steel Company with 423,653 tons (down 12% YOY).

Other major producers included Sabzevar Steel Company with 442,276 tons (up 9% YOY), MIDHCO with 423,172 tons (down 11% YOY), Sefiddasht Steel Company with 415,797 tons (up 42% YOY), Neyriz Steel Complex with 362,530 tons (down 16% YOY), Shadegan Steel Complex with 360,808 tons (down 13% YOY), Mianeh Steel Complex with 338,560 tons (down 19% YOY), Saba Steel with 309,974 tons, Baft Steel Company with 245,954 tons and Esfahan Steel Company with 51,452 tons (down 49% YOY), according to Financial Tribune.

DRI production reached 2.05 million tons during the month ending Oct. 22, indicating a 6% decline YOY.

Iran is the world's second biggest producer of DRI after India.

According to the World Steel Association's latest report, 21.52 million tons of DRI were produced in Iran during the first nine months of 2019.

Iran’s September DRI output grew 11.4% year-on-year to hit 2.4 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 nine-month production by 6.8% YOY to 27.2 million tons.

The largest decline was in Argentina, where output decreased 37.3% YOY to 724,000 tons.

4% Growth in Iron Ore Concentrate Output

About 30.33 million tons of iron ore products were produced in Iran during the seven months to Oct. 22.

Iron ore concentrate output stood at 27.61 million tons to register a 4% growth compared with the corresponding period of the year before. Production in the seventh month stood at 3.87 million tons remaining unchanged YOY.

Golgohar Mining and Industrial Complex accounted for 9.43 million tons of the total output (up 1% YOY), followed by Chadormalu Mining and Industrial Complex with 5.8 million tons (up 12% YOY), Middle East Mines and Mining Industries Development Holding Company with 3.03 million tons (up 4% YOY), Iran Central Iron Ore Company with 2.88 million tons (down 7% YOY), Goharzamin Iron Ore Company with 2.57 million tons (down 2% YOY), Opal Parsian Sangan with 1.73 million tons (up 3% YOY), National Development Industrial and Mineral Company with 1.29 million tons (up 71% YOY), Sabanour Mining and Industrial Development Company with 556,312 tons (down 25% YOY) and Jalalabad Iron Ore Complex with 292,000 tons (down 5% YOY).

The production of iron ore in the form of fines/lumps totaled 2.71 million tons during the seven-month period, going down 40% YOY. Production in the seventh month stood at 357,325 tons to register a 36% decline YOY.

Sabanour Mining and Industrial Development Company accounted for 1.33 million tons of the total output (up 3% YOY), followed by Iranian Central Plateau Iron Ore Mines Complex with 531,957 tons (down 12% YOY), Iran Central Iron Ore Company with 335,525 tons (down 67% YOY), Chadormalu Mining and Industrial Complex with 269,500 tons (up 7% YOY) and Sangan Iron Ore Complex with 247,477 tons (down 81% YOY).

1% Decline in Pellet Output

Pellet output hit 24.36 million tons during the seven months, down 1% YOY. Golgohar was the largest producer with 7.08 million tons (up 1% YOY), followed by Mobarakeh Steel Company with 4.21 million tons (down 7% YOY), Khouzestan Steel Company with 3.72 million (down 1% YOY), MIDHCO with 3.28 million tons (up 16% YOY), Chadormalu with 1.98 million tons (down 2% YOY), Opal Parsian Sangan with 1.9 million tons (down 18% YOY), Sangan Mineral and Industrial Company with 1.18 million tons (down 24% YOY), Khorasan Steel Company with 736,892 tons (up 142% YOY) and Sabanour Mining and Industrial Development Company with 247,017 tons (up 24% YOY).

Pellet production witnessed a 7% growth YOY during the seventh month to 3.38 million tons.

Iran is the world's 10th biggest producer of steel and the second biggest producer of sponge iron after India, according to World Steel Association.

According to World Steel Association's latest data, Iran is the 10th biggest producer of steel in the world.

Worldsteel's latest report shows the country produced 19.31 million tons of crude steel during the nine months of 2019, up 6% compared with the corresponding period of 2018.

Iran is aggressively pursuing the target of becoming the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 million tons and 20-25 million tons of exports per year by 2025. Iranian steel mills have so far realized about 34 million tons of the capacity target.

According to Deputy Minister of Industries, Mining and Trade, and Chairman of Iranian Mines and Mining Industries Development and Renovation Khodadad Gharibpour, Iranian steel industry is an export-oriented one that exports more than 40% of its steel output.