The Iranian Mines and Mining Industries Development and Renovation Organization has released a news report on the sales of 73 heavyweight Tehran Stock Exchange-listed mining and mineral companies.
According to the report, the aggregate sales volume of the firms under review stood at 1,498 trillion rials ($9.79 billion) during the first 11 months of the current Iranian year (March 21, 2019-Feb. 19) to register a 71% rise compared with last year's corresponding period.
Their sales volume during the 11th month of the year (Jan. 21-Feb. 19) stood at 153 trillion rials ($1 billion) to register a 2% rise compared to the previous month and a 38% rise compared with last year's similar month.
Mobarakeh Steel Company registered the highest sales volume among the firms with 365.94 trillion rials (2.33 billion), up 76% year-on-year. The company’s sales during the 11th month of the year stood at 37.98 trillion rials ($248.23 million), indicating a 45% YOY increase and a 19% rise month-on-month.
MSC is the biggest steel manufacturer in Iran and the Middle East and North Africa region, accounting for about half of the country's steel production.
MSC's steel production capacity stands at 10.2 million tons per year, while its actual production is 8.7 million tons annually. The mill’s steel sheet production stands at 7.3 million tons per year.
“We expect to face new demand in the future, demands requiring higher quality, more solid, anti-corrosion, lighter and more affordable steel products,” the company's Managing Director Hamid Reza Azimian was quoted as saying recently.
Notably, MSC plans to establish a second hot rolling mill, which is expected to render the country self-sufficient in steel sheet production.
According to Azimian, MSC’s Hot Rolling Mill No. 2 will have a production capacity of 4.5 million tons of HRC per year.
“We have reached an agreement with a foreign company. The project requires €260 million worth of investment, 54% of which (or €140.4 million) will be provided domestically while the remaining 46% will be funded by the foreign side,” he told Financial Tribune on the sidelines of the 10th edition of Iranian Steel & Iron Ore Market Conference & Expo, also known as “ISMC 2020”, held on Jan. 21 and 22 at IRIB International Conference Center in Tehran.
Azimian noted that the project will create 1,000 direct jobs at MSC and 8,000 indirect jobs once it becomes operational.
“It will completely meet Iranian industries’ demand for different types of steel sheets of various sizes and qualities,” he said.
As per the agreement with the foreign contractor, the project will take 900 days to complete before it comes on stream.
MSC was followed by the Iranian National Copper Industries Company with 201.82 trillion rials ($1.31 billion) of sales during the 11-month period, up by 145% YOY. The company's sales stood at 18.7 trillion rials ($122.2 million) during the 11th month of the year, up 46% YOY but down 31% MOM.
NICICO is a leading copper producer in the Middle East and North Africa region and its mines hold close to 14% of Asia’s copper deposits and about 3% of global reserves.
Khuzesan Steel Company ranked third as its sales totaled 140.77 trillion rials ($920 million) in 11 months, up 40% YOY. Its sales volume during the 11th month of the year stood at 13.33 trillion rials ($87.12 million), up 4% YOY but down 6% MOM.
The steelmaker, located in the southwestern Khuzestan Province, is the biggest steel exporter in Iran, shipping its products to over a dozen countries. About half of KSC's exports goes to the Middle East and North Africa region. Its other major export destinations are located in the Far East and the Americas.
Golgohar Mining and Industrial Company (GEG) sold 115.25 trillion rials ($753.26 million) worth of mineral products in 11 months, witnessing a 36% rise YOY. The company's sales stood at 9.15 trillion rials ($59.8 million) in the 11th month of the year, down 8% both YOY and MOM.
Standing in the fifth place was Esfahan Steel Company (ESCO) with 97.23 trillion rials ($635.49 million) worth of sales in 11 months, indicating a 59% growth YOY. ESCO registered a 36% YOY and an 18% MOM rise in its 11th month’s sales (11.1 trillion rials or $72.54 million).
Chadormalu Mining and Industrial Company came next with 88.91 trillion rials ($581.1 million) worth of sales in 11 months, up 34% YOY. The company sold 10.17 trillion rials ($66.47 million) in the 11th month to register a 103% rise YOY and a 16% increase MOM.
Gohar Zamin Iron Ore Company’s sales in the 11 months under review reached 57.45 trillion rials ($375.49 million), up 762% YOY. The company’s sales amounted to 4.35 trillion rials ($28.4 million) in the 11th month, up 9% YOY and 5% MOM.
With 54.79 trillion rials (358.1 million) worth of sales in 11 months, Hormozgan Steel Company was next to register a 68% rise YOY. In the 11th month of the year, the company’s sales reached 5.86 trillion rials ($38.3 million), up 8% YOY, but down 12% MOM.
South Kaveh Steel Company’s 11-month sales went up by 69% YOY to 48.29 trillion rials ($315.62 million) as its sales during the 11th month rose by 162% YOY (down 13 MOM) to 4.41 trillion rials ($29.6 million).
Khorasan Steel Company sold 41.39 trillion rials ($270.52 million) worth of products in 11 months, up 84% YOY. The steel mill’s sales totaled 3.91 trillion rials ($25.5 million) in the 11th month, indicating a 15% rise YOY and a 7% increase MOM.
