MSC Excels Domestic Rivals

EghtesadOnline: With an output of 13.26 million tons, Mobarakeh Steel Company held the largest share of steel production in Iran during the first nine months of the current fiscal year (March 21-Dec. 21, 2019).

News ID: ۷۸۵۲۵۱

12 January 2020

The company produced 6.19 million tons of finished steel during the period, posting a 2% rise compared with last year's corresponding period, Financial Tribune reported.

In addition, 7.06 million tons of semi-finished products were produced by MSC, remaining unchanged year-on-year, the Iranian Mines and Mining Industries Development and Renovation Organization’s (IMIDRO) latest report shows.

Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran as well as the Middle East and North Africa region.

In production of finished steel, MSC was followed by Esfahan Steel Company (ESCO) with 1.7 million tons (up 5% YOY), Oxin Steel Company with 587,840 tons (up 23% YOY), Khorasan Steel Company with 462,055 tons (up 10% YOY), Azarbaijan Steel Company with 272,945 tons (up 6% YOY), IASCO with 229,032 tons—198,408 tons of rebar (up 8% YOY) and 30,624 tons of “other” products (up 290% YOY), Bonab Steel Company with 191,845 tons—906 tons of beams, 190,204 tons of rebar (up 233% YOY) and 1,641 tons of miscellaneous products (down 54% YOY), Ahvaz Rolling and Pipe Manufacturing Company with 185,000 tons (down 10% YOY), Chaharmahal-Bakhtiari Automotive Sheet Company with 176,702 tons (up 3% YOY), and INSIG with 129,848 tons—91,148 tons of rebar (up 151% YOY), 30,133 tons of beam, and 8,567 tons of pipes (up 113% YOY).

In semis production, MSC was followed by KSC with 2.81 million tons (down 1% YOY), ESCO with 1.79 million tons (up 6% YOY), South Kaveh Steel Company with 888,136 tons (up 15% YOY), Khorasan Steel Company with 861,610 tons (up 14% YOY), Chadormalu Steel Company with 750,161 tons (up 14% YOY), Arfa Iron and Steel Company with 658,403 tons (up 4% YOY), Iran Alloy Steel Company with 355,621 tons (up 11% YOY), Bonab Steel Company with 199,321 tons (up 690%) and INSIG with 8,082 tons.

The above-mentioned steelmakers, considered heavyweight producers in Iran, produced 25.54 million tons of steel (semis and finished) during the nine months to Dec. 21 to register a 10.8% rise year-on-year.

A total of 10.14 million tons of finished steel products, including hot- and cold-rolled coils, rebar, beams, pipes, wide and galvanized sheets were produced by these steel mills during the period under review to register a 6% YOY growth.

Their production of finished steel products stood at 1.02 million tons in the ninth Iranian month (Nov. 22-Dec. 21), posting a 12% growth year-on-year.

They produced a total of 15.39 million tons of semi-finished steel, including ingot, bloom and billet (semi-finished products), during the nine months, up 4% year-on-year.

As for semis output during the month ending Dec. 21, 1.72 million tons of slab, bloom, billet and ingot were produced to register a 3% growth YOY.

World's 10th Biggest Steelmaker

Iran is the world's 10th biggest steel producer and the second biggest sponge iron producer 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. Its report shows the country produced 23.64 million tons of crude steel during the 11 months of 2019 (January to November), up 5.3% compared with the corresponding period of 2018.

The country is aggressively pursuing the target of becoming the world’s sixth largest steel producer as per the 20-Year Vision Plan, which projects an 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 34 million tons of the capacity target.

According to IMIDRO Chairman Khodadad Gharibpour, Iranian steel industry is an export-oriented one that exports more than 40% of its steel output.

Production Capacity at 35m Tons p.a.

Iran's current steel production capacity stands at 35 million tons per annum, says Deputy Industries Minister Jafar Sarqeini.

According to the official, several steel units with an overall capacity of 10 million tons are currently under construction with a physical progress of over 50%, while an additional capacity of 10 million tons have been planned.

“All these efforts are aimed at reaching the target of 55 million tons of steel in the 20-year Vision Plan,” he was quoted as saying by Fars News Agency.

Sarqeini noted that over the past three to four years, steel production growth in Iran has always been higher than the global average.

IMIDRO expects Iran’s steel production capacity to reach 43.6 million tons by the end of next Iranian year, while the actual production is estimated to hit 31.1 million tons by utilizing 71% of the nominal capacity.