Iranian steelmakers produced a total of 35.23 million tons of semi-finished and finished steel products during the first eight months of the current fiscal year (March 20-Nov. 20) to register a 10.7% year-on-year increase.
According to the Iranian Steel Producers Association’s latest report, semis accounted for 20.59 million tons of the total output, up 13% YOY.
Billet and bloom made up 12.84 million tons of semi-finished production whereas slab output hit 7.74 million tons to register a 16% and 8% YOY rise respectively.
The output of finished steel increased by 8% YOY to 14.63 million tons.
Long steel products had a 7.44 million-ton share in the output of finished steel products, posting a 10% growth YOY.
Rebar production stood at 6.04 million tons (up 11% YOY). It was followed by beams with 863,000 tons (up 17% YOY) and L-beam, T-beam and other types with 543,000 tons (down 2% YOY).
Production of flat steel picked up during the seven-month period, increasing by 6% year-on-year to 7.18 million tons.
Hot-rolled coil made up 6.02 million tons of the production in this category, showing a 5% rise compared with the similar period of last year, followed by cold-rolled coil with 1.819 tons to register a 6% YOY rise and coated coil with 1.049 tons (down 4%).
MSC Remains Iran’s Top Steelmaker
Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show that Mobarakeh Steel Company produced 6.68 million tons of semi-finished steel products during the eight months that started on March 20.
The mill's semi-finished output was 7% higher than the first eight months of the previous fiscal year.
The company’s output during the eighth month of the current fiscal year (Oct. 22-Nov. 20) increased by 11% to reach 837,715 tons.
MSC and its subsidiary Saba Steel Company produced 5.5 million tons of finished steel during the eight months under review. As a result, the company maintained its position as the largest Iranian steelmaker.
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 semis production, MSC was followed by Khuzestan Steel Company with 2.59 million tons of output during the eight months. The number indicates a growth of 3% compared with the same period of last year.
KSC’s semi-finished output increased by 2% in the eighth month of the year to 314,218 tons.
Esfahan Steel Company followed with 1.551 million tons of bloom output during the eight months, marking a decline of 3% year-on-year. The company's monthly output of semis dropped by 14% to 188,987 tons.
South Kaveh Steel Company with 822,722 tons (up 5% YoY), Khorasan Steel Company with 656,926 tons (down 13% YOY) and Chadormalu Steel Company with 652,221 tons (down 2% YOY) were other main producers of semi-finished steel products during the eight months to Nov. 20.
South Kaveh Steel Company ranked fourth in terms of monthly semi-output production during the month to Nov. 20. The company’s output stood at 138,847 tons during the one-month period, up 38%. Chadormalu Steel Company followed with 94,386 tons of semis output during the month under review, marking a 4% increase YOY.
Production Capacity Nears 40m Tons p.a.
The total annual capacity of Iranian steel companies has reached 39.82 million tons, according to new data released by the Iranian Mines and Mining Industries Development and Renovation Organization.
Presently, there are 84 steel mills in Iran.
Mobarakeh Steel Company, Iran’s biggest steelmaker, accounts for 18% of the total production capacity with 7.2 million tons per year.
Khuzestan Steel Company comes next with 3.8 million tons followed by Esfahan Steel Company with 3.6 million tons and South Kaveh Steel Company with 2.4 million tons.
As per the goals set in the 20-Year National Vision Plan (2005-25), Iran seeks to become the world’s sixth largest steelmaker by 2025 with a crude steel output capacity of 55 million tons.
According to IMIDRO, Iran’s steel production capacity is expected to reach 43.6 million tons by the end of the current Iranian year (March 20, 2021), while actual production is estimated to hit 31.1 million tons to utilize 71% of the nominal capacity.
IMIDRO is a state-run enterprise and Iran's biggest holding company active in the mining sector.
19% Decline in Exports
A total of 5.466 million tons of finished and semi-finished steel products were exported from Iran during the same eight months to register a 19.4% year-on-year decline, according to the Iranian Steel Producers Association.
Semi-finished steel made up 3.78 million tons of the total export volume, down 13% YOY.
Billet and bloom had the lion’s share of semis exports with an aggregate of 2.78 million tons – 3% less than the previous year’s corresponding figure of 2.95 million tons. Slab came next with 914,000 tons, down 36% YOY. Iranian steelmakers exported more than 1.4 million tons of slab during the same period of the previous year.
Exports of finished steel products declined by 30% to 1.679 million tons during the period.
Rebar accounted for the largest portion of finished steel products with 983,000 tons. The volume of Iran rebar exports experienced a 37% fall compared with the same period of last year.
Hot-rolled coil came next with 371,000 tons, registering no change compared with the first eight months of the previous fiscal year.
Beams exports amounted to 120,000 tons during the period under review, down 4% YOY. Nearly 125,000 tons of L-beam, T-beam and other types were also exported from Iran during the eight-month period, recording a 14% decline YOY.
Coated coil with 55,000 tons, down 54% YOY and cold-rolled coil with 25,000 tons, down 73% YOY, were the other finished steel products exported from Iran.
Exports of direct-reduced iron dropped by 43% YOY to 403,000 tons, ISPA figures show.
Mobarakeh Steel Company also recorded a substantial increase in exports during the eighth month of the current fiscal year (Oct. 22-Nov. 20)–73% to 201,429 tons.
MSC topped the list of steel mills in terms of exports during the month under review. However, a survey of the performance of major steel producers during the first eight months of the current fiscal year shows that Khouzestan Steel Company is still Iran’s leading exporter.
Khouzestan Steel Company exported 950,024 tons of slab, bloom and billet during the first eight months of the current fiscal year, down 25%.
MSC came next with 681,233 tons, registering a 32% decrease compared with the same period of last fiscal year.
IMIDRO’s data show KSC’s exports during the eighth month of the year stood at 72,411 tons, down 60% year-on-year.
KSC exported a record high of 2.76 million tons in the last fiscal year (March 2019-20), marking a growth of 34% YOY.
Esfahan Steel Company’s exports totaled 641,585 tons during the eight months under review to register an 18% year-on-year decline.
The company’s exports during the month under review went down by 7% to 90,970 tons.
South Kaveh Steel Company took the next spot with 418,400 tons of billet exports to post a 24% YOY fall. The mill recorded a 2% decline in monthly exports, with 84,500 tons.
Chadormalu Iron Ore Processing Company was next with 362.231 tons of billet exports, nearly 29,932 tons of which were shipped during the eighth month of the current fiscal year.
IMIDRO’s data show a 105% increase in the company's exports in the first eight months of the year and a 36% jump in the eighth month's shipments. Hormozgan Steel Company followed by exporting 313,482 tons during the eight months, down 41%. HSC shipped 21,031 tons during the month to Nov. 20, marking a 74% decline YOY.
Saba Foolad Company registered the highest jump among major steel exporters, during the first eight months of the current fiscal year. The mill exported 251,888 tons, 232% higher than the same period of last year.
Bonab Steel Company registered the highest growth during the eighth month of the year, 329% with 8,847 tons.
A surge in domestic demand as well as price controlling policies adopted by the Ministry of Industries, Mining and Trade are among key causes behind the fall in major steel producers' exports.
69% Rise in Imports
Unlike exports, imports of finished and semi-finished steel products saw an increase during the period under review compared with last year’s corresponding period.
The ISPA report shows March 20-Nov. 20 steel imports stood at 615,000 tons, up 69% YOY.
Semis imports, which only consisted of billet and bloom, made up 4,000 tons of the total figure, up 33% compared with the same period of last year. Billet and bloom imports amounted to 3,000 tons, up 50%. Slab imports remained unchanged at 1,000 tons.
Imports of finished steel jumped by 69% YOY to 611,000 tons. The imports mostly included HRC with 237,000 tons, up 323%; coated coil with 151,000 tons, up 1%; CRC with 168,000 tons, up 85%; L-beam, T-beam and other types with 30,000 tons, down 12%; rebar with 18,000 tons, down 22%; and beams with 7,000 tons, down 7% when compared with last year's figures for the same period.
