Economy, Business And Markets

Crude Steel Output at 3.1m Tons

Crude Steel Output at 3.1m TonsCrude Steel Output at 3.1m Tons

Iranian steel mills produced 3.1 million tons of crude steel in the first two months of the current Iranian year (started March 20), which indicates a 5.6% rise over last year’s corresponding period, Iranian Mines and Mining Industries Development and Renovation Organization reported on its website on Tuesday.

Mobarakeh Steel Company accounted for more than 1.5 million tons of the overall figure; Khuzestan Steel Company 619,929 tons; Esfahan Steel Company 392,781 tons; Hormozgan Steel Company 227,221 tons; Saba Steel Company 114,777 tons; Khorasan Steel Company 83,280 tons; Iran Alloy Steel Company 50,259 tons, and Iran National Steel Industry Group 8,547 tons.

Iran’s crude steel output stood at about 16 million tons in the last Iranian year (March 2015-16).

The country aims to become the world’s sixth largest steel producer as per its 20-Year National Vision Plan (2005-25), which stipulates the production of 55 million tons of crude steel per year.

According to Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh, more than 20 million tons have been added to the 25-million-ton domestic steelmaking capacity in the last two years after a series of iron ore concentrate, pellet and sponge iron production plants were established across the country.

  Scrap Iron Imports Inevitable

Iranian steel mills need 6 million tons of ferrous scrap metal per year to reach the 55-million-ton target.

Domestic steel producers currently consume 2.5 to 2.7 million tons of scrap iron per year.

The country’s depleting scrap reservoirs necessitate imports and the expansion of storage capacities at Iranian ports.