Iranian aluminum industry produced a record high of 404,950 tons of ingots during the first 11 months of the current Iranian year (March 20, 2020-Feb. 19).
According to the latest report released by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), the output is 63.3% higher than the corresponding period of last year, when producers' collective output amounted to 247,966 tons.
The flagship producer Iran Aluminum Company (IRALCO) accounted for the highest portion of total output with 170,422 tons, up 5% compared with the same period of last year.
IRALCO is the top producer of aluminum in Iran. Inaugurated in 1972, the plant has an annual production capacity of 180,000 tons.
It was followed by Almahdi Aluminum Company with 147,855 tons, up 928% YOY; South Aluminum Company (SALCO) with 63,837 tons and Iran Alumina Company with 22,836 tons.
The overall output during the month to Feb. 19 amounted to 40,167 tons, indicating a 51% rise YOY.
Iran Alumina Company managed to post the highest growth in both 11-month and 11th month output – 181% and 98%, respectively.
The company, which is the sole producer of alumina powder in Iran, produced 213,405 tons of alumina powder during the 11-month period, unchanged compared with the similar period of last year. The company's output amounted to 19,442 tons during the month to Feb. 19, down 6% year-on-year.
The revival of three major factories, namely SALCO, Jajarm and Hormozal (affiliated with Almahdi Aluminum Company), is the main reason behind the rise in Iran's aluminum output this year, according to Secretary of Iran Aluminum Industry Syndicate Aria Sadeqniyat-Haqiqi.
Interference in pricing aluminum products also poses a problem in Iran's aluminum sector.
Iranian producers had a total output of 275,716 tons of aluminum ingots during the last Iranian year that ended on March 19, 2020, to register an 8% decrease compared with the year before.
The combined nominal capacity of Iran's aluminum producers, namely IRALCO in Arak (Markazi Province), Almahdi and Hormozal in Bandar Abbas (Hormozgan Province) and the newly-inaugurated Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province), stands at 468,000 tons per year.
IRALCO accounts for 175,000 tons of the total followed by Hormozal with 143,000 tons, Almahdi with 110,000 tons and Jajarm with 40,000 tons.
According to Shahriar Taherpour, a former managing director of IMIDRO, Iran’s per capita aluminum consumption is around 4.5 kilograms over the past 10 years against about 9 kilograms in the world.
The US and Canada are the biggest aluminum consumers in the world, with per capita rates of 23 and 27 kilograms respectively.
The Iranian aluminum industry’s biggest challenge currently revolves around supplying raw materials, including alumina and petroleum coke. Not having access to raw materials due to sanctions and also having to purchase them at prices much higher than global rates are producers’ problems.
Plans are underway to connect aluminum production units to railroads and explore new bauxite mines to reduce costs.
Plans are underway to connect aluminum production units to railroads and explore new bauxite mines to reduce costs.
South Aluminum Corporation, located in the city of Lamerd, Fars Province, was inaugurated in April 2020.
According to the former industries minister, Reza Rahmani, the project will boost Iran’s aluminum production capacity to 785,000 tons per year, once all its development phases come on stream.
“The factory has come with a price tag of more than $1.2 billion,” he had said at the inaugural ceremony.
"Cutting-edge technology has been incorporated into the project and the development of the project is in line with environmental concerns."
The company’s shares are owned by two companies: Ghadir Investment Company owns 51% and IMIDRO owns the rest.
The factory is set to produce a range of aluminum products, including sheets, profiles, ingots, doors, windows, composites, nuts and bolts.
Its final production capacity is to reach 1 million tons of aluminum ingots and billets per year.
SALCO is looking to become Iran’s biggest aluminum producer and the fourth major producer in the Middle East.
The combined nominal capacity of IRALCO located in Arak (Markazi Province), Almahdi Aluminum Company and Hormozal Aluminum Company both located in Bandar Abbas (Hormozgan Province) and Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province) stands at 468,000 tons per year.
