A total of 34.3 million tons of iron ore concentrate were produced in Iran during the nine months to December 21 to register 22% growth compared to last year's similar period.
According to the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report, Golgohar Mining and Industrial Complex accounted for 11.88 million tons of the total output (up 15% YOY), followed by Chadormalu Mining and Industrial Complex with 6.73 million tons (up 7% YOY), Iran Central Iron Ore Company with 4 million tons (up 8% YOY), Middle East Mines and Mining Industries Development Holding Company with 3.86 million tons (up 34% YOY), Goharzamin Iron Ore Company with 3.26 million tons (up 8% YOY), Opal Parsian Sangan with 2.19 million tons (up 34% YOY), National Development Co. with 1.07 million tons (unchanged), and Jalalabad Iron Ore Complex with 378,133 tons (up 47% YOY).
Iron ore concentrate output during the during the ninth calendar month ending Dec. 21 amounted to 3.85 million tons to register 18% rise compared to last year’s same month.
Pellet output hit 31.14 million tons during the nine months, up 32% YOY. Golgohar was the largest producer with 8.98 million tons (up 10% YOY), followed by Mobarakeh Steel Company with 5.7 million tons (unchanged), Khouzestan Steel Company with 4.7 million tons (down 3% YOY), MIDHCO with 3.73 million (up 59% YOY), Opal Parsian Sangan with 2.82 million tons (unchanged), Chadormalu with 2.63 million tons (up 3% YOY), Sangan Mineral and Industrial Company with 2.04 million tons (unchanged), and Khorasan Steel Company with 507,420 tons (unchanged).
Pellet production witnessed year-on-year 30% increase during the ninth month to 3.66 million tons.
Production of direct-reduced iron stood at 18.64 million tons during the nine months, up 25% YOY. Mobarakeh accounted for the largest share of the output with 5.47 million tons (down 2% YOY), followed by KSC with 2.78 million tons (down 10% YOY), Hormozgan Steel Company with 1.27 million tons (up 11% YOY), South Kaveh Steel Company with 1.69 million tons (up 3% YOY), Golgohar with 1.09 million tons (unchanged), Khorasan Steel Company with 927,737 tons (up 9% YOY), Saba Steel Complex with 938,187 tons (up 14% YOY), Arfa Steel Co. with 652 tons (up 2% YOY), Ghadir Iron, and Steel Co. with 622,034 tons (down 1 YOY), MIDHCO with 623,914 tons (up 1% YOY), Neyriz Steel Complex with 556,705 tons (unchanged), Mianeh Steel Complex with 528,373 tons (unchanged), Shadegan Steel Complex with 535,171 tons (unchanged), Sabzevar Steel Co. with 518,122 tons (unchanged), Sefiddasht Steel Company with 420,372 tons (up 72% YOY), Saba Steel with 315,754 tons (unchanged), and Esfahan Steel Co. with 128,196 tons (up 22% YOY).
DRI production reached 2.13 million tons during the month ending Dec. 21, indicating 24% growth YOY.
A total of 14.74 million tons of semi-finished steel and 8.3 million tons of finished steel products were produced in nine months, up 10% and 5% respectively YOY
Downstream Output
From the above raw materials, a total of 14.74 million tons of slab, bloom, billet and ingot were produced during the nine-month period under review, up 10% YOY. Mobarakeh Steel Company, with its subsidiaries Saba and Hormozgan Steel, was the biggest producer with 7.07 million tons (up 10% YOY). KSC came next with 2.83 million tons (up 1% YOY), followed by ESCO with 1.68 million tons (down 1% YOY), South Kaveh Steel Company with 771,358 tons (up 20% YOY), Khorasan Steel Company with 755,341 tons (up 30% YOY), Chadormalu Steel Company with 658,473 tons (up 166% YOY), Arfa Iron and Steel Co. with 635,657 tons (up 7% YOY), and Iran Alloy Steel Company with 321,394 tons (up 4% YOY).
As for output during the ninth month of the Iranian calendar year, a total of 1.67 million tons of slab, bloom, billet and ingot were produced to register 4% growth YOY.
Moreover, 8.3 million tons of finished steel products, including hot and cold-rolled coils, rebar, beams, pipes, wide and galvanized sheets were produced during the nine months, up 5% YOY. MSC and its subsidiary Saba Steel had the largest share of production with 4.92 million tons (up 10% YOY), followed by ESCO with 1.62 million tons (down 1% YOY), Oxin Steel Company with 478,128 tons (down 13% YOY), Khorasan Steel Company with 419,795 tons (up 8% YOY), Azarbaijan Steel Company with 256,290 tons (up 51% YOY), IASCO with 191,675 tons—183,818 tons of rebar (down 12% YOY) and 7,857 tons of ‘other’ products (up 4% YOY), Ahvaz Rolling and Pipe Manufacturing Co. with 204,874 tons (down 10% YOY), Chaharmahal-Bakhtiari Automotive Sheet Company with 171,150 tons (up 9% YOY), and INSIG with 40,317 tons—36,303 tons of rebar (down 42% YOY) and 4,014 tons of pipes (down 31% YOY).
Production of finished steel products stood at 779,543 tons in ninth calendar month to see 13% decline YOY.
Capacity, Production, Consumption
Currently Iran’s steel production capacity stands at 34 million tons per year, according to Deputy Minister of Industries, Mining and Trade, Jafar Sargheini.
The country aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity of 55 million tons and 20-25 million tons of exports per year by 2025.
Speaking to ILNA, the head of the Iranian Steel Producers' Association Bahram Sobhani said Iran's steel production would surpass 25 million tons by year's end (March 20).
In an article published by the Persian daily Donyaye Eghtesad, member of Economic Studies Department at FooladTechnic International Engineering Company Amir Reza Soleimani-Nasab, explained that Iranian steel producer's focus on exports has led to considerable decrease in domestic consumption.
According to the official, based on latest available data on consumption during the first half of the current year (March 21- September 22), it is predicted that per capita domestic steel consumption would fall to less than 200 kilograms by year's end. In other words, after three years of continuous growth in domestic steel consumption, the country is expected to see at least 20% decline in per capita consumption this year.
According to the Iranian Steel Producers Association's latest report reviewing the first eight months of the current fiscal year (March 21-November 21), Iran's apparent steel usage – defined as production plus imports minus exports, sometimes also adjusted for changes in inventories – stood at 13.31 million tons for semis, growing 34%; and hit 13 million for finished products to drop 4% YOY.
Hot-rolled coil had the lion’s share of finished steel consumption as it reached 5.21 million tons, down 3% YOY. It was followed by rebar with 4.05 million tons, up 7% YOY; cold-rolled coil with 1.86 million tons, down 8% YOY; coated coil with 984,000 tons, down 20% YOY; 'other steel products' with 431,000 tons, down 23%; and beams with 454,000 tons, down 21% YOY.
As for semis, usage of billet and bloom grew 39% to 7.28 million tons, while that of slab rose 27% to 6.03 million tons.
DRI usage was up 20% for the period to 16.96 million tons.
