Iran Steel Output, Trade Surveyed Over 10 Months

EghtesadOnline: New data released by the Iranian Steel Producers Association show the output of semi-finished products stood at 23.21 million tons during the current fiscal year’s first 10 months (March 21, 2021-Jan. 20), which is 8% lower compared with the corresponding period of last year.

News ID: ۷۸۷۷۲۹

20 February 2022

Billet and bloom made up 13.75 million tons of total semi-finished production, down 13% year-on-year.

Slab output reached 9.46 million tons to register a 1% YOY decline.

The output of finished steel declined by 5% YOY to 16.4 million tons. Long steel products had a 9.41 million-ton share in the output of finished steel products, posting a 2% decline compared with the similar period of last year.

Rebar production stood at 7.7 million tons (down 2% YOY). It was followed by beams with 1.03 million tons (down 3% YOY) and L-beam, T-beam and other types with 670,000 tons (down 2% YOY).

Production of flat steel with 7 million tons registered an 8% YOY decline.

Hot-rolled coil comprised 6.89 million tons in this category, showing a 5% YOY decline, followed by cold-rolled coil with 2.08 million tons, down 7% YOY, and coated coil with 1.25 down 5% compared with last year’s corresponding period.

The output of direct reduced iron stood at 25.81 million tons during the period under review, up 1% YOY.

Major Producers

According to the Iranian Mines and Mining Industries Development and Renovation Organization, Mobarakeh Steel Company produced 7.87 million tons of semi-finished products during the period down 5% year-on-year.

The steelmaker also produced 6.44 million tons of finished steel during the period, down 4% YOY.

In terms of semis production, MSC was followed by Khuzestan Steel Company with 2.74 million tons of output during the period.

Esfahan Steel Company came next with 1.97 million tons of semis output and was followed by South Kaveh Steel Company with 1.16 million tons, Chadormalu Steel Company with 861,901 tons and Khorasan Steel Company with 731,745 tons during the period under review.

In terms of finished products, MSC was followed by ESCO with 1.89 million tons. Other key producers of finished products were Kavir Steel Company, Oxin Steel Company, Khorasan Steel Company, Bonab Sheet Company, Azarbaijan Steel Company and Sirjan Steel Company.

MSC also topped the list of Iranian steelmakers in terms of both semi-finished and finished steel production during the current fiscal year’s 10th month (Dec. 22-Jan. 20) by producing 667,932 and 667,227 tons of semis and finished steel products respectively.

Upstream Production

According to IMIDRO, a total of 42.84 million tons of iron ore concentrate were produced in Iran by major steelmakers during the 10 months under review, registering a 3% increase compared with the same period of last year.

Golgohar Mining and Industrial Complex had the highest share of output by producing 13.9 million tons, which figure is unchanged year-on-year.

Chadormalu Mining and Industrial Complex followed with 10.11 million tons (up 6% YOY), followed by Middle East Mines and Mining Industries Development Holding Company with 5.05 million tons (down 5% YOY) and Goharzamin Iron Ore Company with 3.92 million tons (up 5% YoY) of output during the period under review.

Other major producers included Iran Central Iron Ore Company with 3.28 million tons (down 6% YOY), SIMIDCO with 2.03 million tons (down 1%) and Opal Parsian Sangan with 1.97 million tons (up 2% YOY).

Iron ore concentrate output during the month to Jan. 20 amounted to 4.17 million tons, registering a 2% increase compared with the same period of last year.

Golgohar was the leading producer during the month, accounting for 1.29 million tons of the monthly output and was followed by Chadormalu with 959,824 tons of monthly output.

The pellet output of major steel mills reached 42.95 million tons during the 10-month period, posting a growth rate of 11% compared with the same period of the previous year.

Golgohar was again the largest producer with 10.37 million tons (down 1% YOY), followed by Mobarakeh Steel Company with 5.71 million tons (down 8% YOY), MIDHCO with 4.78 million tons (down 11% YOY), Khouzestan Steel Company with 4.7 million tons (down 8%) and Sangan Khorasan Steel Company with 3.39 million tons (up 31%).

Other major pellet producers included Chadormalu with 3.15 million tons (up 2% YOY), Opal Parsian Sangan with 2.74 million tons (down 2% YOY) and Khorasan Steel Company with 1.8 million tons (down 12% YOY).

Pellet production witnessed a 6% year-on-year increase during the 10th month of the Iranian year to 3.74 million tons, IMIDRO’s data show.

Golgohar had the lion’s share with 1.02 million tons of pellet output in the month under review.

Production of direct reduced iron stood at 24.02 million tons during the period under review, down 6% YOY.

Mobarakeh accounted for the largest share of the output with 5.4 million tons (down 13% YOY), followed by KSC with 2.84 million tons (down 14% YOY), Golgohar with 2.38 million (down 4% YOY), South Kaveh Steel Company with 1.46 million tons (up 1% YOY), Hormozgan Steel Company with 1.45 million tons (up 8% YOY) and Chadormalu Steel Company with 1.27 million tons (down 4% YOY).

DRI production reached 1.82 million tons during the period, indicating a 17% decrease YOY.

Mobarakeh Steel Company produced 271,101 tons of DRI to lead the market during the 10th month. The company's monthly output declined by 22% compared with the previous year’s corresponding period.

DRI, also known as sponge iron, is produced from the direct reduction of iron ore in the form of lumps, pellets or fines by a reducing gas. It can be processed to create wrought iron.

Iran and India are the world’s biggest producers of DRI.

Double-Digit Rise in Exports

A total of 5.81 million tons of semi-finished steel products were exported from Iran during the 10 months to Jan. 20, up 13% compared with the previous year’s similar period.

Billet and bloom had the lion’s share of semis exports with an aggregate of 3.92 million tons, unchanged from the previous year’s corresponding period.

Slab exports amounted to 1.89 million tons during the period, up 56% year-on-year.

Exports of finished steel products grew by 15% to 2.73 million tons during the period.

Rebar accounted for the largest portion of finished steel products exported from Iran during the period, with 1.95 million tons. The total volume of Iran’s rebar exports experienced a 31% growth compared with the same period of last year.

Beam exports amounted to 118,000 tons during the period under review, down 22% YOY.

About 164,000 tons of L-beam, T-beam and other types were also exported from Iran during the period, up 3% YOY.

Hot-rolled coil exports amounted to 389,000 tons, registering an 18% decline compared with the year before.

Cold-rolled coil with 16,000 tons registered a 38% decline year-on-year and coated coil with 90,000 tons, up 23% YOY, was the other finished steel product exported from Iran.

Exports of direct-reduced iron increased by 48% YOY to 985,000 tons, ISPA figures show.

Major Exporters

According to IMIDRO, Khouzestan Steel Company exported 1.51 million tons of steel products during the period to register a 20% year-on-year rise and top the list of Iranian exporters.

KSC's exports in the 10th month of the year stood at 177,951 tons, 14% higher compared with the same period of last year.

Mobarakeh Steel Company came next with 980,758 tons of exports during the 10-month period, up 5% YOY.

MSC exported 94,638 tons of steel products in the period, down 50% YOY. It was followed by Esfahan Steel Company with 937,906 tons of exports, 19% higher YOY.

The company's exports during the month ending Jan. 20 stood at 62,334 tons, 5% less YOY.

Sirjan Iranian Steel Company registered the highest growth of 150% in export volume with 179,995 tons during the period. South Kaveh Steel Company’s monthly exports registered the highest growth in terms of volume, with 132,000 tons of exports, up 69% YOY.

26% Decline in Finished Imports

Imports of finished steel decreased by 26% YOY to 592,000 tons during the same period.

The imports mostly included HRC with 113,000 tons, down 63%; CRC with 226,000 tons, unchanged compared with the last year’s corresponding period; coated coil with 178,000, down 7%; L-beam, T-beam and other types with 31,000 tons, down 24% YOY; rebar with 24,000 tons, unchanged year-on-year and beam with 14,000 tons, up 53%.

Semi-finished steel imports made up 5,000 tons of the total import volume, unchanged YOY.

Iran imported 2,000 tons of billet and bloom in the period, down 50% YOY. Slab imports stood at 3,000 tons, up 200% from last year's same period.

Iran did not import DRI during the period under review.