The boost in capacity, Khodadad Gharibpour added, will also lead to a jump in the country’s total output to a record high of 31 million tons per annum by March 2021, IRNA reported.
The country’s current steel production capacity stands at 37.5 million tons per year. It produced 27.5 million tons of steel during the last fiscal year (ended March 2020).
Gharibpour referred to the vital role of steel sector in the job market and about 200,000 people are directly involved in the steel industry.
“Each direct job in the industry—from the mining sector to the end of the processing chain—leads to the creation of 17 indirect job opportunities,” he said.
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.
According to a recent report by Iranian Mines and Mining Industries Development and Renovation Organization on the development of under-construction steel production units, a total of 19.1 million tons will be added to Iran’s annual steel production capacity by the time the development of all these units is complete in the fiscal 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 million tons by March 2024, only 900,000 tons short of the target, for reaching which Iranian steelmakers will have one more year.
World's 10th Biggest Producer
According to the latest report released by the World Steel Association, Iranian steel mills produced a total of 13.89 million tons of crude steel during the first half of 2020 to register a 10.2% rise compared with the corresponding period of 2019.
Iran remains the world’s 10th biggest crude steel producer.
The country is placed between Brazil (ninth) with 14.24 million tons of production in H1 and Vietnam (11th) with 10.85 million tons.
The country's June output stood at 2.43 million tons to witness a year-on-year growth of 5.3%, according to the Brussels-based international trade body for the iron and steel industry.
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.
Export Capacity at $4b p.a.
Iran’s steel export capacity currently hovers around $4 billion per year.
According to the Iranian Steel Producers Association's latest report, 2.23 million tons of finished and semi-finished steel products were exported from Iran during the first four months of the current Iranian year (March 20-July 21), registering a 31.83% decrease compared with the similar period of last year.
Semi-finished steel made up 1.66 million tons or more than 74.46% of the total export volume to register a 23% year-on-year drop.
Billet and bloom had the lion’s share of semis exports with an aggregate of 1.34 million tons to mark a 2% decline YOY. Slab followed with 322,000 tons, down 59% YOY.
Exports of finished steel products decreased 49% YOY to reach 571,000 tons.
Long steel products had the biggest share of finished steel exports with a total of 491,000 tons (85.9%) to register a 40% YOY decline.
Rebar was the main exported product in this category with 407,000 tons, registering a YOY fall of 42%, followed by L-beam, T-beam and other types with 46,000 tons (down 32% YOY) and beams with 38,000 (down 32% YOY).
The export of flat steel products amounted to 80,000 tons during the period, indicating a YOY drop of 74%.
Hot-rolled coil grabbed the lion’s share in this category with 46,000 tons to witness an 77% decrease YOY.
Next was coated coil with 22,000 tons, down by 62% YOY, and cold-rolled coil with 12,000 tons, down 76% YOY.
Exports in the last Iranian year (March 2019-20) were put at more than 10.36 million tons to register a 22.21% year-on-year increase.