A total of 18.55 million tons of direct reduced iron were produced in Iran during the first eight of the current Iranian year (March 21-Nov. 21), 7% more compared with last year's corresponding period, according to the Iranian Steel Producers Association's latest report.
Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show Mobarakeh Steel Company accounted for the largest share of the output with 4.55 million tons (down 7% YOY), followed by KSC with 2.62 million tons (up 6% YOY), Golgohar with 1.83 million tons, Hormozgan Steel Company with 1.08 million tons (down 6% YOY), South Kaveh Steel Company with 1.02 million tons (unchanged YOY), Chadormalu Steel Company with 1.01 million tons, Khorasan Steel Company with 943,731 million tons (up 8% YOY), Saba Steel Complex with 807,825 tons (down 1% YOY), Sabzevar Steel Company with 516,005 tons (up 12% YOY) and Arfa Steel Company with 500,739 tons (down 13% YOY).
Other major DRI producers included MIDHCO with 488,912 tons (down 11% YOY), Ghadir Iron and Steel Company with 487,669 tons (down 12% YOY), Sefiddasht Steel Company with 486,082 tons (up 36% YOY), Neyriz Steel Complex with 421,617 tons (down 14% YOY), Shadegan Steel Complex with 408,245 tons (down 13% YOY), Mianeh Steel Complex with 395,958 tons (down 18% YOY), Saba Steel with 374,883 tons, Baft Steel Company with 310,955 tons (up 378% YOY) and Esfahan Steel Company with 66,252 tons (down 44% YOY).
DRI production reached 2.33 million tons during the month ending Nov. 21, indicating a 13% increase YOY.
Iran is the world's second biggest producer of DRI after India.
According to World Steel Association's latest report, 24 million tons of DRI were produced in Iran during January-October 2019.
Iran’s October DRI output grew 3.3% year-on-year to hit 2.48 million tons.
The country produced a total of 25.54 million tons of DRI in 2018, up 31.6% YOY.
India, Iran's main rival in DRI output, increased its 10-month production by 6.1% YOY to 30.05 million tons.
4% Growth in Iron Ore Concentrate Output
A total of 31.54 million tons of iron ore concentrates were produced in Iran during the eight months to Nov. 21 to register a 4% growth compared with the corresponding period of the year before. Production in the eighth month stood at 3.93 million tons, up 3% YOY.
Golgohar Mining and Industrial Complex accounted for 10.73 million tons of the total output (up 1% YOY), followed by Chadormalu Mining and Industrial Complex with 6.45 million tons (up 8% YOY), Middle East Mines and Mining Industries Development Holding Company with 3.49 million tons (up 5% YOY), Iran Central Iron Ore Company with 3.3 million tons (down 7% YOY), Goharzamin Iron Ore Company with 2.99 million tons (up 1% YOY), Opal Parsian Sangan with 2 million tons (up 4% YOY), National Development Industrial and Mineral Company with 1.52 million tons (up 67% YOY), Sabanour Mining and Industrial Development Company with 693,012 tons (down 16% YOY) and Jalalabad Iron Ore Complex with 330,623 tons (up 2% YOY).
Pellet Output Close to 28 Million Tons
Pellet output hit 27.73 million tons during the eight months, remaining unchanged YOY.
Golgohar was the largest producer with 8.11 million tons (up 2% YOY), followed by Mobarakeh Steel Company with 4.5 million tons (down 12% YOY), Khouzestan Steel Company with 4.24 million (up 3% YOY), MIDHCO with 3.81 million tons (up 14% YOY), Chadormalu with 2.33 million tons (up 1% YOY), Opal Parsian Sangan with 2.1 million tons (down 15% YOY), Sangan Mineral and Industrial Company with 1.42 million tons (down 14% YOY), Khorasan Steel Company with 898,130 tons (up 113% YOY) and Sabanour Mining and Industrial Development Company with 281,867 tons (up 27% YOY).
Pellet production witnessed an 8% growth YOY during the eighth month to 3.37 million tons.
Steel Output Rises 5.8% to 30.9m Tons
Iranian steelmakers produced more than 30.98 million tons of semis and finished steel products during the eight months under review (March 21-Nov. 21) to register a 5.82% year-on-year increase.
Semi-finished steel made up 17.42 million tons of the total output, up 5% YOY.
Billet and bloom made up 10.25 million tons of semi-finished production while slab output hit 7.17 million tons to register an 11% rise and 3% decline respectively YOY.
As for finished steel, the output increased 7% YOY to 13.55 million tons.
Flat steel products had the lion's share of finished steel production with 6.8 million tons, up 4% YOY. HRC made up 5.71 million tons of the production in this category, registering a 3% growth YOY, followed by CRC with 1.71 million tons (up 4% YOY) and coated coil with 1.09 million tons (up 20% YOY).
Long steel products had a share of 6.75 million tons in the output of finished steel products, posting a 9% rise YOY. Rebar had a major share here with 5.45 million tons (up 9% YOY), followed by beams with 740,000 tons (up 22% YOY) and L-beam, T-beam and other types with 556,000 tons (up 9% YOY).
PERED Technology
Iran is the engineer of the direct-reduction technology called PERED, or Persian Reduction, invented and patented by Mines and Metals Engineering GmbH, an Iranian engineering company registered in Germany.
PERED technology, which makes optimum use of energy and raw materials, reduces production costs with the added advantage of being more environment-friendly compared to other direct reduction methods.
There are generally three methods for DRI production: HYL process, presently marketed under ‘Energiron’ trademark, jointly developed by Tenova and Danieli; MIDREX Process patented by Midrex Technologies Inc. along with its parent company Kobe Steel Ltd; in addition to PERED.
The replacement of MIDREX and Energiron with PERED will cut production costs by cutting on the required initial investment and operational costs. Moreover, it is more eco-friendly.
DRI, also known as sponge iron, is produced from direct reduction of iron ore in the form of lumps, pellets or fines by a reducing gas. It can be processed to create wrought iron.
Crude steel is dominantly produced using two methods: making cast iron in blast furnaces or using DRI and scrap in electric arc furnaces.
More than 70% of the world’s steel are made using blast furnaces, while Iranian steelmaking is mostly dominated by EAFs.
