The Iranian Mines and Mining Industries Development and Renovation Organization has released a new report on the sales of 72 major Tehran Stock Exchange-listed mining and mineral companies.
According to the report, the aggregate sales volume of the firms under review stood at 1.56 quadrillion rials ($9.73 billion) during the last fiscal year that ended on March 19, 2020, registering a 60% rise compared with last year's corresponding period.
Their sales volume during the 12th month of the year (Feb. 20-March 19) stood at 149.66 trillion rials ($929.56 million) to mark a 0.36% decline compared to the previous month and a 21% rise compared to last year's similar month.
Mobarakeh Steel Company registered the highest sales volume among the firms during the year under review with 391.43 trillion rials ($2.43 billion), up 67% year-on-year. The company’s sales during the 12th month of the year stood at 25.49 trillion rials ($158.36 million), indicating a 3% YOY and a 33% month-on-month decrease.
MSC is the biggest steelmaker in Iran and the Middle East and North Africa region, accounting for about half of the country's steel production. Its steel production capacity stands at 10.2 million tons per year, while its actual production is 8.7 million tons. The mill’s steel sheet production stands at 7.3 million tons per year.
“We expect to face new demand in the future, requiring higher quality, more solid, anti-corrosion, lighter and more affordable steel products,” MSC's Managing Director Hamid Reza Azimian was quoted as saying recently.
MSC plans to establish a second hot-rolling mill, which is expected to render the country self-sufficient in steel sheet production.
The company’s Hot-Rolling Mill No. 2 will have a production capacity of 4.5 million tons of HRC per year, according to Azimian.
“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. 21-22 in Tehran.
According to Azimian, 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 added.
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 227 trillion rials ($1.4 billion) of sales during the 12-month period, up by 125% YOY. The company's sales stood at 25.18 trillion rials ($156.44 million) during the 12th month of the year, up 35% both YOY and 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 158.4 trillion rials ($983.89 million) in 12 months, up 40% YOY. Its sales volume during the 12th month of the year stood at 17.63 trillion rials ($109.52 million), up 38% YOY and 32% MOM.
The steelmaker, located in the southwestern Khuzestan Province, is the biggest exporter of steel in Iran, exporting 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 sold 130.52 trillion rials ($810.72 million) worth of mineral products in 12 months, witnessing a 46% rise YOY. The company's sales stood at 11.82 trillion rials ($73.43 million) in the 12th month of the year, up 38% and 32% YOY and MOM respectively.
Standing at fifth place was Esfahan Steel Company (ESCO) with 108.59 trillion rials ($674.52 million) worth of sales in 12 months, indicating a 51% growth YOY. ESCO registered a 71% YOY and a 29% MOM rise in its 12th month’s sales (11.37 trillion rials or $70.64 million).
Chadormalu Mining and Industrial Company came next with 96.68 trillion rials ($600.52 million) worth of sales in the year, up 32% YOY. The company sold 7.77 trillion rials ($48.27 million) in the 12th month to register a 7% rise YOY and a 24% decrease MOM.
Hormozgan Steel Company’s sales in the year under review reached 61.1 trillion rials ($379.53 million), up 64% YOY. The company’s sales amounted to 6.31 trillion rials (39.24 million) in the 12th month, up 35% YOY and 8% MOM.
With 53.04 trillion rials (329.45 million) worth of sales in 12 months, South Kaveh Steel Company was next to register a 65% rise YOY. In the 12th month of the year, the company’s sales reached 4.75 trillion rials ($29.53 million), up 36% YOY and 8% MOM.
