Subsidiaries of the Iranian Mines and Mining Industries Development and Renovation Organization produced 166,986 tons of aluminum ingots during the first quarter of the current Iranian year (March 21-June 21) to register a 9% increase in output compared with the same period of last year, a new IMIDRO report shows.
IMIDRO is the biggest state-owned mining holding in Iran.
South Aluminum Company accounted for the highest share of total output with 73,591 tons and was followed by Iran Aluminum Company with 45,639 tons, Almahdi Aluminum Company with 38,169 tons and Iran Alumina Company with 9,587 tons.
A total of 61,987 tons of alumina powder were produced by Iran Alumina Company during the period, the sole producer of alumina powder in Iran. The figure registered a 1% decline year-on-year.
Aluminum ingot production stood at 632,166 tons in the last Iranian year (ended March 20) to register a 13% rise compared with the year before.
South Aluminum Company accounted for the highest share of total output with 270,185 tons and was followed by Iran Aluminum Company with 178,077 tons, Almahdi Aluminum Company with 147,749 tons and Iran Alumina Company with 36,155 tons.
A total of 225,942 tons of alumina powder were produced by Iran Alumina Company in the previous fiscal year, the sole producer of alumina powder in Iran. The figure registered a 2% fall year-on-year.
According to Shahriar Taherpour, former managing director of IMIDRO, Iran’s per capita aluminum consumption has been around 4.5 kilograms over the past 10 years against the global average of 9 kilograms.
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, which are priced much higher than global rates, is posing problems for producers.
Boosting Alumina Output With Chinese Assistance
Iran has started researching the possibility of producing 500,000 tons of alumina annually from low-grade bauxite with Chinese assistance.
On Jan. 23, 2023, Touraj Zar'e, managing director of Iran Alumina Company, said the preliminary phase of studies was handled with Chinese cooperation, and “we are conducting the second phase of the studies".
He claimed that once the goal is met, Iran will become self-sufficient in alumina.
"About 80% of Iran's demand for alumina are met with imports that cost the country $1 billion a year," the managing director was also quoted as saying by AlCircle.
According to Zar'e, the country's bauxite resources could be of better quality, as they are currently unsuitable for alumina powder production.
Iran's most remarkable bauxite deposit is located in the northeastern province of North Khorasan, on the edge of the desert.
NFC, or China Nonferrous Metal Industry's Foreign Engineering and Construction Company, has been collaborating with IAC and providing it with equipment.
In July 2019, the first phase of Jajarm refinery began operations with a capacity of 40,000 tons of alumina per year.
The operation was carried out when the US reinstated its secondary sanctions against Iranian steel, aluminum, gold and precious metals, graphite and coal to stifle the nation's revenue streams.
The Jajarm alumina refinery was constructed to reach 280,000 tons of production annually.
Growth in Global Market
According to the latest report by market research group IMARC, the global aluminum market exhibited moderate growth during 2015-20 and is expected to grow at a compound annual growth rate of around 5% during 2021-26.
The increasing usage of aluminum in different industries, such as construction, packaging and automotive, across the world is primarily driving the aluminum market.
As aluminum is extensively utilized in the manufacture of disposable cans, the escalating demand for ready-to-eat food items and beverages is further boosting market growth.
Additionally, aluminum finds wider applications in pharmaceutical packaging, as it creates a healthy barrier against moisture, light, air, etc., ensuring a long shelf life for the product. This, in turn, is expected to fuel aluminum demand in the coming years.
