Aluminum Production Grows 85%

EghtesadOnline: Iranian aluminum producers had a total output of 364,783 tons of ingots during the first 10 months of the current Iranian year (March 20-Jan. 19) to register an 85% rise compared with the corresponding period of last year.

News ID: ۷۸۶۰۵۴

20 February 2021

According to the latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), flagship producer Iran Aluminum Company (IRALCO) accounted for the highest portion of total output with 155,577 tons, unchanged compared with the same period of the last year.

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

It was followed by Almahdi Aluminum Company with 133,558 tons, up 98% YOY, South Aluminum Company (SALCO) with 55,365 tons and Iran Alumina Company with 20,283 tons.

The overall output during the month to Jan. 19 amounted to 39,560 tons, indicating a 58% rise YOY.

Iran Alumina managed to post the highest growth in both 10-month and 10th month output – 196% and 107%, respectively.

Iran Alumina Company, the leading producer of alumina powder in Iran, produced 193,962 tons of alumina powder during the 10-month period, unchanged compared with the similar period of last year. The company's output amounted to 16,732 tons during the month to Jan. 19, down 21% year-on-year.

The country has been experiencing a jump in aluminum and alumina powder exports in recent months. As per the latest figures, aluminum products’ export posted the biggest growth of 108% YOY among minerals during the first three quarters of the current fiscal year to reach 92,050 tons. Alumina powder followed with a 93% YOY increase in exports to reach 650 tons.

According to the IMIDRO data, alumina powder exports saw the biggest jump in terms of value (234% YOY) to reach $1.3 million, followed by aluminum products with $155.8 million (up 82% YOY).

Iranian aluminum producers had a total 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.

South Aluminum Corporation (SALCO) located in the city of Lamerd, Fars Province, was inaugurated in April 2020.

According to the 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 a total of 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 will start the production of 100,000 tons of aluminum ingots per year. The production capacity is expected to reach 300,000 tons per year 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.