The Iranian aluminum industry produced a record high of 446,800 tons of ingots during the last Iranian year (March 2020-21).
According to the latest report released by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), the output is 61% higher than that in the corresponding period of the year before, when producers' collective output reached 278,318 tons.
The flagship producer Iran Aluminum Company (IRALCO) accounted for the highest volume of output with 185,000 tons.
IRALCO, established in 1972, is the top producer of aluminum in Iran.
It was followed by Almahdi Aluminum Company with more than 163,000 tons, South Aluminum Company (SALCO) with 72.1 tons and Iran Alumina Company with 25.4 tons.
Total output during the month ending March 20 amounted to 41,000 tons, indicating a 38% rise YOY.
The revival of three major factories, namely SALCO, Jajarm and Hormozal (affiliated with Almahdi Aluminum Company), is the main reason behind the boost in Iran's aluminum output, according to Secretary of Iran Aluminum Industry Syndicate Aria Sadeqniyat Haqiqi.
However, interference in pricing aluminum products poses a challenge to Iran's aluminum sector.
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 in Jajarm County (North Khorasan Province), stands at 468,000 tons per year.
IRALCO has the highest capacity 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 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. Lack of access to raw materials due to sanctions and also having to purchase them at prices much higher than global rates are problematic for producers.
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 (SALCO) 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, doors, windows, composites, nuts and bolts.
Its annual production capacity will reach 1 million tons of aluminum ingots and billets.
SALCO plans to become Iran’s biggest aluminum producer and the fourth major producer in the Middle East.
