More than 8.21 million tons of direct reduced iron was produced in Iran in the first quarter of the current fiscal (March 20-June 20), indicating 12% rise compared to last year same period.
Data released by the Iranian Mines and Mining Industries Development and Renovation Organization show Mobarakeh Steel Company (MSC) accounted for the largest share of the output with 2.06 million tons (up 3% YOY).
Mobarakeh Steel Company in Isfahan Province, is Iran's biggest producer of sponge iron. MSC is the biggest steel producer in Iran and the MENA region.
MSC was followed by Khuzestan Steel Company (KSC) with 1.25 million tons (up 15%), Chadormalu Steel Company 421,381 tons (up 22%), Golgohar 789,343 tons, South Kaveh Steel Company 420,796 tons (up 12%), Hormozgan Steel Company with 401,472 tons (down 1%), Saba Steel Complex with 386,548 tons (up 19%), Khorasan Steel Company 271,978 tons (down 26%), Sirjan Jahan Steel Company (SJSC) with 258,077 tons (up 55%), Persian Gulf Saba Steel with 234,372 tons, Neyriz Steel Complex with 219,346 tons (up 26% YOY), Sefiddasht Steel Company with 215,917 tons (up 8% YOY), Arfa Steel Co. with 214,351 tons (up 12% YOY), Mianeh Steel Complex with 205,590 tons (up 106% YOY).
In the same order, Sabzevar Steel Co. was next with 192,440 tons (up 8%), Baft Steel Co. 189,008 tons (up 293%), Ghadir Iron and Steel Co. 187,436 tons (up 3%), Shadegan Steel Complex 186,466 tons (up 52%), and Middle East Mines and Mining Industries Development Holding Company with 115,950 tons (down 42%).
Iran’s total DRI output in the third month of the current fiscal to June 20 grew 16% year-on-year to 2.66 million tons.
Also known as sponge iron, DRI is produced from direct reduction of iron ore in the form of lumps, pellets or fines by a reducing gas. It can be processed to create wrought iron.
World's Biggest
Iran is now the world’s top DRI producer.
A total of 12.07 million tons of DRI was produced in the five months since the beginning of 2020 (January to May) to register a 3.47% growth compared to the corresponding period of 2019, said the latest report released by World Steel Association (the Brussels-based international trade body for the iron and steel industry).
The World Steel report shows Iran has overtaken its primary rival, India, which produced 11.01 million tons (down 27.1% year-on-year) during the period under review to become the biggest DRI producer in the world.
Iran was also the world’s biggest DRI producer in May when output grew 7.61% year-on-year to reach 2.7 million tons last month.
In fact, the output accounted for about half of the global production (5.62 million tons) during the month.
India was next with 1.5 million tons, followed by Egypt at 462 tons, Mexico 390 tons, Saudi Arabia 342 tons, the UAE 151 tons, Libya 48 tons, Qatar 14 tons and Venezuela 10 tons.
Expansion Plans
Iran has been striving to increase iron ore processing capacity, including both DRI and hot-briquetted iron production to feed its steelmaking expansion.
IMIDRO expects DRI production capacity to reach 37.2 million tons by the fiscal yearend, while the actual production is estimated to reach 33.6 million tons to utilize 90% of its nameplate capacity.
The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) expects DRI production capacity to reach 37.2 million tons by the end of the current fiscal year (March 2021). Actual production is estimated to reach 33.6 million tons.
An IMIDRO report on development of under-construction DRI production units shows 11 million tons are expected to be added to production capacity by the time the construction of all news units is complete in fiscal 2023-24.
Located in Qaen County, South Khorasan Province, Ghaenat Steel Co. will produce 800,000 tons a year upon completion. It is expected to become operational by the end of this year (March 2021).
Iran Ghaltak Company production capacity will hit 70,000 tons upon completion. Located in Isfahan province, the project is also expected to be launched by the yearend.
Bafgh Iron & Steel Co in Yazd Province, is slated to become operational in fiscal March 2021-22. It will have capacity to produce 800,000 tons of DRI a year.
Kavand Nahan Zamin in Kerman Province, will have 0.5 million tons per year of capacity by the end of this calendar year.
Also coming on stream in fiscal March 2021-22, Behnavard Steel Complex in Yazd and will have a production capacity of 500,000 million tons per year upon completion.
The development of Butia Iranian Steel Co. in Kerman, will add 1.8 million tons to Iran's DRI production. It is expected to be inaugurated in 2022.
In the same year, Bisotoun Steel in Harsin, the capital of Harsin County, Kermanshah Province, is expected to be completed. Production capacity of this unit will reach 150,000 tons a year.
The first phase of Makran DRI Plant in Chabahar, capital of Chabahar County, Sistan-Baluchestan Province, is due to be completed in fiscal March 2023-24 similar to Torbat Steel Complex in capital of Torbat-e Heydarieh County, Razavi Khorasan Province. The former will add 1.6 million tons to domestic DRI production, and the latter's capacity will be 1.8 million tons.
