The country's April output declined 17.8% year-on-year to hit 1.79 million tons, according to the Brussels-based international trade body for the iron and steel industry.
Iran’s world ranking declined compared to Worldsteel's previous monthly report, becoming the world’s 10th biggest crude steel producer from the previous ninth.
The country is placed between Brazil (ninth) with 9.95 million tons of production and Vietnam (11th) with 7.16 million tons, the new report shows.
The world’s 64 steelmakers produced a total of 580.99 million tons of steel over the four-month period, down 4.1% YOY.
Global steel output stood at 137.09 million tons in April, indicating a 13% decrease YOY.
China was the world’s largest crude steel producer with 319.46 million tons of steel output, up 1.3% YOY. It was followed by Japan with 30.73 million tons, India with 30.05 million tons, the United States with 26.68 million tons, Russia with 22.88 million tons, South Korea with 22.43 million tons and Germany with 12.86 million tons.
Iran’s crude steel output stood at 31.9 million tons in 2019, according to Worldsteel, up 30.1% 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.
Expansion Targets
Iran aims to become 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.
Iran's current steel production capacity stands at around 35 million tons per year.
A recent IMIDRO report on under-construction steel production units indicated a total of 19.1 million tons will be added to Iran’s annual steel production capacity by the time the construction of all these units is complete in the 2023-24.
The addition of 19.1 million tons by the time the under-construction projects come on stream to the current capacity means the aggregate output capacity will reach 54.1 by March 2024—only 900,000 short of the target, for reaching which Iranian steelmakers will have one more year.
The country has been working to increase its iron ore processing capacity, including both DRI and hot-briquetted iron production to feed its steelmaking expansion target.
MSC at the Forefront of Production
According to the Iranian Steel Producers Association, Iranian steelmakers produced 47.42 million tons of semi-finished and finished steel products in the last Iranian year that ended on March 19 to register a 8.37% increase compared to the year before.
Semi-finished steel made up 27.24 million tons of the total output, up 10% year-on-year.
Billet and bloom made up 16.78 million tons of semi-finished production, indicating an 18% rise YOY while slab output hit 10.45 million tons, posting no significant change YOY.
As for finished steel, the output increased 6% YOY to 20.18 million tons.
Long steel products had the lion's share of finished steel production with 10.22 million tons, up 6% YOY. Rebar had a major share here with 8.3 million tons (up 6% YOY), followed by beams with 1.12 million tons (up 8% YOY) and L-beam, T-beam and other types with 799,000 tons (up 4% YOY).
Flat steel products had a 9.96 million-ton share in the output of finished steel products, posting a 5% rise YOY. HRC reached 8.23 million tons of the production in this category, registering a 4% growth YOY, followed by CRC with 2.62 million tons (up 4% YOY) and coated coil with 1.63 million tons (up 12% YOY).
Direct-reduced iron production stood at 27.9 million tons during the 12-month period, indicating a 6% rise YOY.
With 17.22 million tons of output, Mobarakeh Steel Company had the largest share of steel production in Iran in the last fiscal year that ended on March 19.
The company produced 8.09 million tons of finished steel during the year, posting a 2% rise compared with last year's corresponding period.
In addition, MSC produced 9.12 million tons of semi-finished products, up 1% year-on-year, the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report shows.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East & North Africa region.