The country's July output stood at 2.34 million tons to witness a year-on-year growth of 14.4%, according to the Brussels-based international trade body for the iron and steel industry.
Iran remains the world’s 10th biggest crude steel producer.
The country is placed between Brazil (ninth) with 17.07 million tons of production in the seven-month period and Vietnam (11th) with 13.06 million tons.
The world’s 62 steelmakers produced a total of 1.027 billion tons of steel over the seven-month period, down 5.3% YOY.
Global steel output stood at 152.7 million tons in July, indicating a 2.5% decrease YOY.
China was the world’s largest crude steel producer with 593.17 million tons of steel output in the seven months under review, up 2.8% YOY.
The giant steel producer was followed by India with 50.28 million tons, Japan with 48.28 million tons, the United States with 41.64 million tons, Russia with 41.05 million tons, South Korea with 38.02 million tons, Germany with 19.88 million tons and Turkey with 19.43 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.
Capacity Expansion Plans
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.
The country’s current steel production capacity stands at 35 million tons per year.
According to a recent report by Iranian Mines and Mining Industries Development and Renovation Organization on 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.
MSC Iran’s Top Steelmaker
With an output of about 6.2 million tons, Mobarakeh Steel Company had the largest share of steel production in Iran during the first four months of the current fiscal year (March 20-July 21), the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report shows.
The steel mill produced 2.81 million tons of finished products during the period and registered a 4% decline compared with last year’s corresponding period.
More than 3.38 million tons of semi-finished products were produced by MSC, up 9% year-on-year.
MSC’s total output over the month ending July exceeded 1.47 million tons, including 684,559 tons of finished steel, down 2% YOY and 785,853 tons of semi-finished steel, up 7% compared with the corresponding period of last year.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.
In terms of finished steel production, MSC was followed by Esfahan Steel Company with 776,695 tons (without a YOY change), Khouzestan Oxin Steel Company with 305,986 tons (up 4% YOY), Khorasan Steel Company with 155,493 tons (down 28% YOY), Azarbaijan Steel Company with 129,118 tons (up 3% YOY) and Bonab Steel Company with 118,740 tons during the four months under review.
In terms of semis, MSC was followed by KSC with over 1.35 million tons (up 4% YOY), Esfahan Steel Company with 782,350 tons (down 4% YOY), Chadormalu Steel Company with 328,149 tons (down 5% YOY), South Kaveh Steel Company with 324,090 tons (down 17% YOY), Khorasan Steel Company with 297,085 tons (down 18% YOY), Arfa Steel Company with 268,574 tons (down 10% YOY) and Sirjan Jahan Steel Company with 266,589 tons.
The above-mentioned steelmakers, considered heavyweight manufacturers in Iran, produced close to 12.28 million tons of steel (semis and finished) during the four months under review.
A total of 4.8 million tons of finished steel products, including hot- and cold-rolled coils, rebar, beams, pipes, wide and galvanized sheets, were produced by these steel mills during the period to register a 2% YOY rise.
They produced 7.48 million tons of semi-finished steel, including ingot, bloom and billet, during the period to witness an 8% rise YOY.
According to Iranian Steel Producers Association, domestic steelmakers, including the output of small-scale producers, produced a total of 16.74 million tons of semi-finished and finished steel products during the four months under review to register a 7.22% year-on-year increase, according to another ISPA report.
Semi-finished steel made up 9.48 million tons of the total output, up 9% YOY.
Billet and bloom made up 5.56 million tons of semi-finished production while slab output hit 3.92 million tons to register an 8% and 10% rise respectively YOY.
The output of finished steel increased by 5% YOY to reach 7.26 million tons.
Flat steel products had the lion’s share of finished steel production with 3.56 million tons, down 1% YOY. Hot-rolled coil made up 3.05 million tons of the production in this category, showing a 1% rise compared with the similar period of last year, followed by cold-rolled coil with 904,000 tons that also registered a 4% rise YOY and coated coil with 470,000 tons (down 12% YOY).
Long steel products had a 3.7 million-ton share in the output of finished steel products, posting an 11% growth YOY. Rebar had a major share with 3.02 million tons (up 12% YOY), followed by beams with 413,000 tons (up 12% YOY) and L-beam, T-beam and other types with 261,000 tons (down 3% YOY).