Iranian aluminum industry produced 86,216 tons of ingots during the first two months of the current fiscal year (ended May 21, 2021).
According to the latest report released by the Iranian Mines and Mining Industries Development and Renovation Organization, the output is 33% higher than the corresponding period of last year, when producers' collective output amounted to 64,689 tons.
The flagship producer Iran Aluminum Company (IRALCO) accounted for the highest portion of total output with 30,278 tons.
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 30,129 tons, South Aluminum Company (SALCO) with 19,664 tons and Iran Alumina Company with 6,145 tons.
A total of 169,118 tons of bauxite (raw material for the production of alumina powder) were produced by Iran Alumina Company in the period under review, indicating a 52% rise compared with the 110,926 tons during the same period of last year.
Iranian aluminum industry produced a record high of 446,800 tons of ingots during the last Iranian year (March 2020-21).
According to IMIDRO, the output was 61% higher than that in the year before, when producers' collective output amounted to 278,318 tons.
A total of 19,328 tons of alumina powder were produced by Iran Alumina Company last year, the sole producer of alumina powder in Iran. The number is 8% lower year-on-year.
The revival of three major factories, namely SALCO, Jajarm and Hormozal (affiliated with Almahdi Aluminum Company), is considered the main reason behind the boost in Iran's aluminum output this year.
However, interference in pricing aluminum products is a major problem facing Iran's aluminum sector.
The combined nominal capacity of Iran's aluminum producers, namely IRALCO located 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 has been 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 a per capita rate 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 issues vexing producers.
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 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," he said.
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.
