A total of 27.03 million tons of direct reduced iron were produced in Iran in the last fiscal year that ended on March 19, 7% more compared to the year before.
Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show Mobarakeh Steel Company accounted for the largest share of the output with 6.44 million tons (down 9% YOY).
In fact, MSC had the largest share of steel production in Iran with an output of 17.22 million tons in the last fiscal year that ended on March 19.
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.
In terms of DRI production, also known as sponge iron, MSC was followed by Iran's biggest exporter of steel, Khuzestan Steel Company, with 3.73 million tons (down 3% YOY), Golgohar with 2.79 million tons, Chadormalu Steel Company with 1.58 million tons, Hormozgan Steel Company with 1.52 million tons (down 10% YOY), South Kaveh Steel Company with 1.51 million tons (unchanged YOY), Khorasan Steel Company with 1.44 million tons (up 7% YOY) and Saba Steel Complex with 1.23 million tons (down 1% YOY).
Other major DRI producers were Arfa Steel Company with 783,757 tons (down 9% YOY), Ghadir Iron and Steel Company with 752,409 tons (down 10% YOY), Sabzevar Steel Company with 750,906 tons (up 7% YOY), MIDHCO with 736,018 tons (down 12% YOY), Sefiddasht Steel Company with 725,089 tons (up 31% YOY), Neyriz Steel Complex with 684,520 tons (down 3% YOY), Shadegan Steel Complex with 660,787 tons (down 10% YOY), Mianeh Steel Complex with 594,613 tons (down 3% YOY), Baft Steel Company with 553,108 tons (up 751% YOY), Saba Steel with 436,765 tons and Esfahan Steel Company with 66,252 tons (down 48% YOY).
DRI production reached 2.38 million tons during the month ending March 19, indicating a 16% increase YOY.
Iran is the world's second biggest producer of DRI after India.
According to World Steel Association, 27.73 million tons of DRI were produced in Iran in 2019, registering a 7.7% year-on-year growth.
Iran’s December DRI output declined 1.1% year-on-year to hit 2.5 million tons.
India, Iran's main rival in DRI output, increased its production in 2019 by 7.7% YOY to 36.85 million tons.
The country produced a total of 25.54 million tons of DRI in 2018, up 31.6% YOY.
Production Capacity to Hike by March 2024
An IMIDRO report on the completion of under-construction direct-reduced iron production units shows a total of 11 million tons are expected to be added to Iran’s DRI production capacity when the construction of these units is completed in the fiscal 2023-24.
Located in Qaen County, South Khorasan Province, Ghaenat Steel Company will have 800,000 tons per year of production capacity upon completion. It is expected to become operational by the end of the current fiscal year (March 2021).
Iran Ghaltak Company's production capacity will hit 70,000 tons per year upon completion. Located in Isfahan province, the project is also expected to be launched by the fiscal yearend.
Bafgh Iron and Steel Company, located in Yazd Province, is slated to become operational in the fiscal 2021-22. It will have the capacity to produce 800,000 tons of DRI per year upon completion.
Kavand Nahan Zamin, located in Kerman Province, will have a production capacity of 0.5 million tons per year by the end of the fiscal March 2021-22.
Also coming on stream in the fiscal 2021-22, Behnavard Steel Complex in Yazd will have a production capacity of 500,000 million tons per year upon completion.
The development of Butia Iranian Steel Company in Kerman will add 1.8 million tons to the capacity of Iran's DRI production. It is expected to be inaugurated in the fiscal 2022-23.
In the same year, the construction of Bisotoun Steel Company located in Harsin, the capital of Harsin County, Kermanshah Province, is also expected to be completed. The production capacity of this unit will reach 150,000 tons per year.
The first phase of Makran DRI Plant in Chabahar, capital of Chabahar County, Sistan-Baluchestan Province, is due to be completed in the fiscal 2023-24 similar to Torbat Steel Complex in Torbat-e Heydarieh County, Khorasan Razavi Province.
The former will add 1.6 million tons per year to the capacity of Iran's DRI production, and the latter's capacity will hit 1.8 million tons per year upon completion.
