Major producers of aluminum in Iran have registered a 24% rise in output.
According to the latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization, Iran’s aluminum industry produced 453,436 tons of ingots during the current fiscal year’s first 10 months (March 21, 2021-Jan. 20).
The output is 24% higher than that in the corresponding period of last year.
South Aluminum Company (SALCO) accounted for the highest portion of total output with 149,496 tons. It was followed by Iran Aluminum Company with 148,299 tons, Almahdi Aluminum Company with 124,428 tons and Iran Alumina Company with 31,213 tons.
A total of 193,534 tons of alumina powder were produced by Iran Alumina Company in the 10-month period, the sole producer of alumina powder in Iran. The figure is unchanged year-on-year.
Iran Alumina Company produced 767,921 tons of bauxite (raw materials for the production of alumina powder) during the period under review, indicating a 13% rise compared with 679,462 tons year-on-year.
The Iranian aluminum industry produced a record high of 446,800 tons of ingots during the last Iranian year (March 2020-21).
According to IMIDRO, the output was 61% higher than that in the year before, when producers' collective output amounted to 278,318 tons.
A total of 19,328 tons of alumina powder were produced by Iran Alumina Company last year, the sole producer of alumina powder in Iran. The number is 8% lower YOY.
The revival of three major factories, namely SALCO, Jajarm and Hormozal (affiliated with Almahdi Aluminum Company), is considered the main reason behind the rise in Iran's aluminum output last year.
However, the interference in pricing is a major problem in Iran's aluminum sector.
The combined nominal capacity of Iran's aluminum producers, namely Iran Aluminum Company located in Arak (Markazi Province), Almahdi and Hormozal in Bandar Abbas (Hormozgan Province) and the newly-inaugurated Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province), stands at 468,000 tons per year.
According to Shahriar Taherpour, a former managing director of IMIDRO, Iran’s per capita aluminum consumption has been around 4.5 kilograms over the past 10 years against the global average of 9 kilograms.
The Iranian aluminum industry’s biggest challenge currently revolves around supplying raw materials, including alumina and petroleum coke. Not having access to raw materials due to sanctions and also having to purchase them at prices much higher than global rates are posing problems for producers.
Plans are underway to connect aluminum production units to railroads and explore new bauxite mines to reduce costs.
According to the latest report by market research group IMARC, the global aluminum market exhibited moderate growth during 2015-20 and is expected to grow at a CAGR of around 5% during 2021-26.
The increasing usage of aluminum in different end-use industries, such as construction, packaging and automotive, across the globe, is primarily driving the aluminum market.
As aluminum is extensively utilized in the manufacture of disposable cans, the escalating demand for ready-to-eat food products and beverages is further augmenting market growth.
Additionally, aluminum finds wide applications in pharmaceutical packaging as it creates a barrier against contamination from moisture, light, air, etc., ensuring a long shelf life for the product. This, in turn, is expected to fuel the aluminum market in the coming years.
