Iranian steel mills sold over 254.35 trillion rials ($1.58 billion) worth of steel products during the last fiscal year that ended on March 19, 2020.
According to Reza Shahrestani, a member of the Board of Directors of Iran Steel Producers Association, the sales volume shows a 93% rise compared to the year before, Young Journalists Club reported.
Latest data show Iranian steelmakers produced 43.28 million tons of semi-finished and finished steel products during the 11 months since the beginning of the last Iranian year (March 21, 2019-Feb. 19) to register a 7.96% year-on-year increase.
According to the Iranian Steel Producers Association's latest report, semi-finished steel made up 24.93 million tons of the total output, up 10% YOY.
Billet and bloom made up 15.33 million tons of semi-finished production while slab output hit 9.59 million tons to register an 18% rise and a 1% decline respectively YOY.
As for finished steel, the output increased 5% YOY to 18.35 million tons.
Long steel products had the lion's share of finished steel production with 9.25 million tons, up 6% YOY. Rebar had a major share here with 7.48 million tons (up 5% YOY), followed by beams with 1.03 million tons (up 8% YOY) and L-beam, T-beam and other types with 738,000 tons (up 13% YOY).
Flat steel products had a 9.09 million-ton share in the output of finished steel products, posting a 5% rise YOY.
HRC made up 7.51 million tons of the production in this category, registering a 3% growth YOY, followed by CRC with 2.39 million tons (up 2% YOY) and coated coil with 1.57 million tons (up 24% YOY).
MSC at the Forefront
With 15.82 million tons of output, Mobarakeh Steel Company had the largest share of steel production in Iran during the period under review, according to the Iranian Mines and Mining Industries Development and Renovation Organization.
The company produced 7.43 million tons of finished steel during the period, posting a 2% year-on-year rise.
In addition, 8.38 million tons of semi-finished products were produced by MSC, remaining unchanged year-on-year.
Located in southwestern Isfahan, MSC is the biggest steel producer in Iran and the Middle East and North Africa region.
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.
The company plans to establish a second hot-rolling mill, which is expected to render the country self-sufficient in steel sheet production.
According to MSC’s CEO Hamidreza Azimian, the company’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 said.
Azimian was speaking to Financial Tribune on the sidelines of the 10th edition of Iranian Steel and Iron Ore Market Conference and Expo, also known as 'ISMC 2020', held on Jan. 21-22 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 added.
As per the agreement with the foreign contractor, the project will take 900 days to complete before it comes on stream.
In terms of finished steel production, MSC was followed by Esfahan Steel Company (ESCO) with 2.13 million tons (up 6% YOY), Oxin Steel Company with 714,852 tons (up 29% YOY), Khorasan Steel Company with 564,022 tons (up 9% YOY), Azarbaijan Steel Company with 342,341 tons (up 4% YOY), IASCO with 288,703 tons—254,631 tons of rebar (up 16% YOY) and 34,072 tons of “other products” (up 243% YOY), Bonab Steel Company with 215,423 tons—906 tons of beams, 212,876 tons of rebar (up 273% YOY) and 1,641 tons of “other products” (down 54% YOY), Ahvaz Rolling and Pipe Manufacturing Company with 225,000 tons (down 18% YOY), Chaharmahal-Bakhtiari Automotive Sheet Company with 216,516 tons (up 8% YOY) and INSIG with 177,032 tons—121,,746 tons of rebar (up 112% YOY), 46,046 tons of beams (up 345% YOY) and 9,240 tons of pipes (up 54% YOY).
In semis production, MSC was followed by KSC with 3.39 million tons (down 3% YOY), ESCO with 2.21 million tons (up 6% YOY), South Kaveh Steel Company with 1.07 million tons (up 13% YOY), Khorasan Steel Company with 1.06 million tons (up 12% YOY), Chadormalu Steel Company with 932,575 tons (up 15% YOY), Arfa Iron and Steel Company with 798,953 tons (up 2% YOY), Iran Alloy Steel Company with 454,037 tons (up 18% YOY), Bonab Steel Company with 243,443 tons (up 865%) and INSIG with 14,785 tons.
$133m Invested in 5 Steel Projects
The Ministry of Industries, Mining and Trade launched five steel projects with a total investment of 21.39 trillion rials ($133 million) during the 11 months to Feb. 19.
Two of the projects became operational in Isfahan Province while the rest went on stream in the provinces of Lorestan, Fars and Khuzestan, IRNA reported, citing the Industries Ministry's data.
The new projects were related to the production of pipes and profiles, different types of steel sheets, direct-reduced iron and steel ingots. Totally, they created close to 1,000 fresh jobs.
Pars Steel Factory, located in Haft Tappeh, Khuzestan Province, is one of the five projects. It has the capacity to produce 100,000 tons of steel ingots per year in its first development phase. It became operational with €5 million of investment sourced from the National Development Fund of Iran, the country's sovereign wealth fund, in addition to 245.1 billion rials ($1.53 million).
Pipe and profile factory in Shahreza, Isfahan Province, is a project with an annual production capacity of 500,000 tons. Another steel project came on stream in Isfahan to produce steel sheets.
Khorramabad Steel Complex in Lorestan Province became operational with a nominal production capacity of 80,000 tons and actual capacity of 75,000 tons of different types of steel sheets per year.
And finally, Pasargad Steel Company in Fars Province became operational late last year to produce direct reduced iron. The second and the third development phases of the company, each with 1.8 million tons of capacity, have been planned to become operational by the end of the fiscal 2022-23.
