Iranian steel mills produced 5.6 million tons of crude steel during the first two months of 2020, which indicates a 40.5% rise compared with the corresponding period of 2019, the latest report released by the World Steel Association shows.
The country's February output grew 34.3% year-on-year to hit 2.71 million tons, according to the Brussels-based international trade body for the iron and steel industry.
Iran’s world ranking declined from the previous eighth (in January) to become the world's ninth biggest crude steel producer during the two months under review.
The country is placed between Turkey (eighth) with 5.86 million tons of production and Brazil (10th) with 5.38 million tons, the new report shows.
The world’s 64 steelmakers produced a total of 293.98 million tons of steel over the two-month period, up 1% YOY.
Global steel output stood at 143.29 million tons in February, indicating a 2.8% increase YOY.
China was the world’s largest crude steel producer with 154.7 million tons of output, up 3.1% YOY. It was followed by India with 18.85 million tons, Japan with 16.16 million tons, the United States with 14.82 million tons, Russia with 11.61 million tons, South Korea with 11.13 million tons and Germany with 6.03 million tons.
Iran’s crude steel output stood at 31.9 million tons in 2019, according to Worldsteel, up 30.1% YOY.
Crude steel is defined as steel in its first solid (or usable) form: ingots and semi-finished products (billets, blooms and slabs). This is not to be confused with liquid steel, which is steel poured.
Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets production capacity expansion to 55 million tons and an export of 20-25 million tons per year by 2025. Iranian steel mills have so far realized more than 34 million tons of the capacity target.
A recent IMIDRO report on development of under-construction steel production units indicated a total of 19.1 million tons will be added to Iran’s annual steel production capacity by the time the development of all these units is complete in the fiscal 2023-24.
The addition of 19.1 million tons by the time the under-construction projects come on stream to the current capacity means the aggregate output capacity will reach 54.1 by March 2024–only 900,000 short of the target, for reaching which Iranian steelmakers will have one further year.
The country has been working to increase its iron ore processing capacity, including both DRI and hot-briquetted iron production to feed its steelmaking expansion target.
According to IMIDRO, a total of 23.15 million tons/year is expected to be added to Iran’s iron ore concentrate production capacity by the time the development of all these units is complete in the fiscal 2023-24.
A total of 25.92 million tons are expected to be added to Iran’s iron ore pellet production capacity by the time the development of all these units is complete in the same year.
A total of 11 million tons are expected to be added to Iran’s direct-reduced iron production capacity by the time the construction of all these units is complete in the fiscal 2023-24.
According to Chairman of Iranian Mines & Mining Industries Development & Renovation Khodadad Gharibpour, Iranian steel industry is an export-oriented one that exports more than 40% of its steel output.
