Iranian steel mills produced a total of 8.48 million tons of crude steel during the first three months of 2020, which indicates a 42.3% rise compared with last year's corresponding period, the latest report released by the World Steel Association shows.
The country's March output grew 46% year-on-year to hit 2.8 million tons.
According to the Brussels-based international trade body for the iron and steel industry, Iran’s world ranking is now at ninth place, between Turkey (eighth) with 8.97 million tons of production and Brazil (10th) with 7.88 million tons.
The world’s 64 steelmakers produced a total of 443.4 million tons of steel over the three-month period, down 1.3% YOY.
Global steel output stood at 146.94 million tons in March, indicating a 6.1% decrease YOY.
China was the world’s largest crude steel producer with 234.45 million tons of steel output, up 1.2% YOY.
China was followed by India with 27.5 million tons, Japan with 24.36 million tons, the United States with 21.94 million tons, Russia with 17.9 million tons, South Korea with 16.93 million tons and Germany with 9.47 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.
The latest Worldsteel report shows global direct-reduced iron output increased 4.4% year-on-year to 23.22 million tons in Q1 2020.
Global DRI output in March stood at 7.61 million tons to register a 2.8% increase YOY.
Production for 2019 grew 2.2% year-on-year to 90.06 million tons.
Iran was the second biggest producer in the world with 7.34 million tons of DRI production during the three months under review to register a 12% YOY growth.
Iran’s March DRI output grew 18.3% YOY to hit 2.5 million tons.
The country produced a total of 27.73 million tons of DRI in 2019, up 7.7% YOY.
India, Iran's primary rival in DRI output, increased its three-month production by 10.7% YOY to 9.72 million tons.
The largest decrease was in Argentina, where output decreased 43.9% YOY to 187,000 tons.
Development Plans on Track
Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 million tons and 20-25 million tons of exports per year by 2025. 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.
A recent IMIDRO report on the construction 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 all these units are ready 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.
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 construction of all these units is complete in the fiscal 2023-24.
This is while 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 former deputy industries minister, Jafar Sarqeini, Iran's current steel production capacity stands at 35 million tons per year.
MSC at the Forefront
According to the Iranian Steel Producers Association's latest report, Iranian steelmakers produced 47.42 million tons of semi-finished and finished steel products in the last Iranian year that ended on March 19, 2020, to register a 8.37% increase compared with the year before.
Semi-finished steel made up 27.24 million tons of the total output, up 10% year-on-year.
Billet and bloom made up 16.78 million tons of semi-finished production, indicating an 18% rise YOY while slab output hit 10.45 million tons, posting no significant change YOY.
As for finished steel, the output increased 6% YOY to 20.18 million tons.
Long steel products had the lion's share of finished steel production with 10.22 million tons, up 6% YOY. Rebar had a major share here with 8.3 million tons (up 6% YOY), followed by beams with 1.12 million tons (up 8% YOY) and L-beam, T-beam and other types with 799,000 tons (up 4% YOY).
Flat steel products had a 9.96 million-ton share in the output of finished steel products, posting a 5% rise YOY. HRC made up 8.23 million tons of the production in this category, registering a 4% growth YOY, followed by CRC with 2.62 million tons (up 4% YOY) and coated coil with 1.63 million tons (up 12% YOY).
Direct-reduced iron production stood at 27.9 million tons during the 12-month period, indicating an 6% rise YOY.
With an output of 17.22 million tons, MSC had the largest share of steel production in Iran in the last fiscal year.
The company produced 8.09 million tons of finished steel during the year, posting a 2% rise compared with last year's corresponding period.
In addition, 9.12 million tons of semi-finished products were produced by MSC, up 1% year-on-year, the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report shows.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.
