Iran Records Highest Global Growth in Steel Production

EghtesadOnline: Iran registered the highest growth in steel output among the world's top 10 steel producing countries in 2020.

News ID: ۷۸۵۸۵۰

30 January 2021

Iranian steel mills produced more than 29 million tons of crude steel last year, which indicate a 13.35% rise compared with 2019.

As per the latest report released by the World Steel Association, Iran was the world’s 10th biggest crude steel producer last year.

China was the world’s largest crude steel producer in 2020 with 1.05 billion tons of steel output, up 5.89% YOY.

It was followed by India with 99.57 million tons (down 10%), Japan with 83.19 (down 16%) million tons, Russia with 73.4 million tons (up 2%), the United States with 52.6 million tons (down 17%), South Korea with 67.12 million tons (down 6%), Turkey with 35.76 million tons (up 5.99%) and Germany with 35.65 million tons (down 10%).

Iran is placed between Brazil (ninth) with 30.97 million tons and Vietnam (11th) with 20.62 million tons.

The world’s 64 steelmakers produced a total of 1.827 billion tons of steel in 2020, down 0.9% YOY. The European Union produced 138.8 million tons of crude steel to register a decrease of 11.8% compared to 2019.

The Middle East produced 45.4 million tons of crude steel in 2020, an increase of 2.5% on 2019.

Closure of businesses and disruption in industrial operations, as a result of Covid-19 pandemic in early 2019, were key factors causing a decline in the output of countries ranked above Iran last year.

Iran's December output increased by 19.6% year-on-year to hit 2.66 million tons, according to the Brussels-based international trade body for the iron and steel industry.

Global steel output stood at 160.85 million tons in December, indicating a 5.58% increase 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 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.

Production Capacity Nears 40m Tons p.a.

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, Iran has 84 steel mills.

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 IMIDRO, 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 to utilize 71% of the nominal capacity.

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