Iran remains the world’s 10th biggest crude steel producer—unchanged compared to the previous monthly report. Nonetheless, Iran registered the highest growth in output among the world's top 10 producers, thanks to a rise in domestic demand and export profitability in recent months.
Turkey and China came next with a 4.2% and 5.5% increase in their 10-month output, while the growth was negative for other major steel producers.
The closure of businesses and disruption in industrial operations, as a result of Covid-19 pandemic, was a key factor behind the decline in the output of countries ranked above Iran during the period.
Iran's October output increased by 27.9% year-on-year to hit 2.66 million tons, according to the Brussels-based international trade body for the iron and steel industry.
The country is placed between Brazil (ninth) with 25.13 million tons and Vietnam (11th) with 21.99 million tons.
The World Steel Association is one of the largest and most dynamic industry associations in the world, with members in every major steel-producing country. Worldsteel represents steel producers, national and regional steel industry associations, as well as steel research institutes. Members represent around 85% of global steel production.
The world’s 64 steelmakers produced a total of 1.512 billion tons of steel over the nine months, down 1.99% YOY.
World crude steel production for the 64 countries reporting to the association was 161.9 million tons in October 2020, a 7.0% increase compared to October 2019.
During the first 10 months of 2020, China remained the world’s largest crude steel producer with 875.5 million tons of steel output, up 5.5% YOY. China's October output amounted to 92.2 million tons, up 12.7%.
It was followed by India with 79.6 million tons, Japan with 68.4 million tons, the United States with 59.8 million tons, Russia with 59.3 million tons, South Korea with 55 million tons, Germany with 29.144 million tons and Turkey with 29.140 million tons.
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.
Annual Outlook
Iran's nominal steel production capacity is set to increase to 42 million tons per annum by the end of the current fiscal year on March 21, 2020, Chairman of Iranian Mines and Mining Industries Development and Renovation Organization Khodadad Gharibpour was quoted as saying by IRNA.
The boost in capacity, he added, will also lead to a jump in the country’s total output, putting it at a record high of 31 million tons per annum by March 2021.
Iran produced 27.5 million tons of steel in the last fiscal year (March 2019-20).
Referring to the vital role of steel sector in the job market, Gharibpour said, “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 processing chain – leads to the creation of 17 indirect jobs.”
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 completion 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 when 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.