Steel mills in Iran produced 10.1 million tons of crude steel during the seven months of 2016, which shows a 4.9% growth compared to the corresponding period last year, according to a preliminary report sent by the World Steel Association to its members including Iranian Mines & Mining Industries Development & Renovation Organization, and seen by the Financial Tribune.
The report shows Iran’s July output recorded a 7.6% rise compared to the same month in 2015 as 1.3 million tons of crude steel was manufactured. However, despite the year-over-year growth in July, Iranian furnaces churned out less crude steel in July compared to the June performance, registering a 10% drop.
Meanwhile, the world’s 66 steelmaking countries maintained their months-long downward production trend, manufacturing an aggregate of 929.7 million crude steel during the 7 months and recording a 1.3% drop year-on-year.
Iran's January-July output placed it in the 14th rank among the world's biggest steelmakers, 2 notches worse than the position it occupied for the first half of 2016. Iran is now positioned between Mexico (13th) with 10.6 million tons and France (15th) with 8.3 million tons of crude steel during the 7-month period.
China was the biggest crude steel producer with 466.5 million tons. Despite pledges to curb production capacity to balance global markets, the steel behemoth recorded a 4.9% increase year-on-year during the seven months.
The world’s biggest steel producer only managed to hit 47% of its full-year capacity-reduction target for the metal through July, top economic planner the National Development and Reform Commission said Tuesday. Some regions wavered in their determination to trim capacity after a recovery in prices this year, spokesman Zhao Chenxin said at briefing in Beijing, Bloomberg reported.
The Chinese government’s plan to cut as much as 150 million tons of steel capacity over five years as part of its so-called supply-side reforms have raised prices and spurred mills to increase output to capture higher margins.
The industrial giant was followed by Japan with a 61 million-ton output, India 55 million, the US 46.9 million, Russia 41.3 million, South Korea 39.3 million, Germany 25.2 million, Brazil 17.5 million, Turkey 19.1 million, Ukraine 14.4 million, Italy 14.1 million and Taiwan with 12.6 million.
Iran’s crude steel output stood at 16.1 million tons in 2015. The country aims to become the world’s 6th largest steel producer as stipulated in the so-called 20-Year National Vision Plan (2005-25), which envisions production of 55 million tons of crude steel per annum by the end of the plan period.
Iranian steel mills have so far realized close to half of the crude steel production capacity target, according to IMIDRO. Annual steelmaking capacity currently stands at about 25 million tons, 17 million tons of which is being utilized.
