Iranian steelmakers registered solid growth in production in the first five months of the current fiscal year (March 21-Aug. 22) compared with last year’s corresponding period.
According to the Iranian Steel Producers Association, the output of semi-finished products stood at 12.65 million tons during the period, 17% more than in the corresponding period of last year.
Production of billet and bloom reached an aggregate of 7.67 million tons, registering an 18% year-on-year rise while that of slab reached 4.97 million tons to mark a 15% YOY rise.
The output of finished steel increased by 20% to 9.05 million tons during the period.
Long steel products grabbed the highest share of finished steel production with 5.18 million tons, registering a 21% increase compared with the similar period of last year.
The production of rebar stood at 4.3 million tons (up 22% YOY), beams hit 499,000 tons (up 10% YOY) and L-beam, T-beam and other types of beams amounted to 374,000 tons (up 15% YOY).
Flat steel reached 3.87 million tons (up 20% YOY) while hot-rolled coil output had the biggest share of flat steel production with 3.75 million tons, marking a 16% YOY rise. It was followed by cold-rolled coil with 1.02 million tons (up 1% YOY) and coated coil with 624,000 tons (up 1% YOY).
The output of direct-reduced iron stood at 14.65 million tons during the period, up 19% YOY.
Exports Decline
A total of 2.47 million tons of semi-finished steel products were exported from Iran in the period under review, down 20% year-on-year.
Billet and bloom had the lion’s share of semis exports with an aggregate of 1.81 million tons, down 11% compared with the previous year’s corresponding period.
Slab exports amounted to 661,000 tons during the period, down 36%.
Exports of finished steel products declined by 17% to 1.16 million tons during the period.
Rebar accounted for the largest portion of finished steel products exported from Iran during the period, with 923,000 tons. The total volume of Iran’s rebar exports experienced a 9% decline compared with the same period of last year.
Beam exports amounted to 44,000 tons during the period under review, down 15%.
About 51,000 tons of L-beam, T-beam and other types were also exported from Iran during the period, down 29%.
Hot-rolled coil exports amounted to 103,000 tons, registering a 52% decline.
Export of cold-rolled coil with 9,000 tons registered 200% growth year-on-year and coated coil with 36,000 tons, down 23%, was the other finished steel product exported from Iran.
Iran exported 213,000 tons of direct-reduced iron, down 57%.
16% Decline in Import of Finished Products
The import of finished steel decreased by 16% YOY to 283,000 tons during the same period. It mostly included HRC with 117,000 tons, up 102%; CRC with 59,000 tons, down 60% compared with the year before; coated coil with 73,000, down 26%; beam with 5,000 tons, down 29% YOY; L-beam, T-beam and other types with 14,000 tons, down 7% YOY and rebar with 15,000 tons, up 15% year-on-year.
Iran did not import any semi-finished steel products and DRI during the period.
World’s 10th Biggest Producer of Crude Steel
Latest data released by the World Steel Association show Iranian steel mills produced a total of 17.4 million tons of crude steel during the January-July 2022 period, registering a 3.4% rise compared with the corresponding period of 2021.
Notably, Iran’s July output hit 2 million tons, up by 34.1% year-on-year.
In terms of world ranking, Iran maintained its global standing as the world’s 10th biggest crude steelmaker despite the decline in production.
China was the world’s largest producer during the seven-month period with 609.3 million tons of steel output, down 6.4% YOY. It was followed by India with 73.3 million tons (up 8 %), Japan with 53.3 million tons (down 4.9%), the United States with 48 million tons (down 3%), Russia with 41.4 million tons (down 7%), South Korea with 39.9 million tons (down 3.4%), Germany with 22.5 million tons (down 5.1%) and Turkey with 21.6 million tons (down 6.9%).
Iran is placed after Brazil (ninth) with 20.3 million tons (down 3.5% 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.
Worldsteel represents steel producers, national and regional steel industry associations and steel research institutes. Members represent around 85% of global steel production.
The 64 countries included in the Worldsteel report produce 85% of global steel.
Iranian steel mills produced a total of 28.5 million tons of crude steel in 2021, registering a 1.8% decline compared with 2020.
“The installed capacity of crude steel production in Iran has exceeded 40 million tons per year,” Deputy Industries Minister Vajiollah Jafari said last year.
“The annual production of steel ingots has exceeded 30 million tons,” the official was also quoted as saying by IRNA during the 8th Steelprice Conference held in October 2021.
“Installed capacity in the domestic steel industry is about 36 million tons of direct reduced iron, 66.7 million tons of pellets and 62.7 million tons of [iron ore] concentrate, but we are still facing problems in supplying raw materials,” he added.
Jafari noted that the target capacity of 55 million tons of steel ingots is expected to be achieved by fiscal 2025-26.
MSC is the biggest steelmaker in Iran and the Middle East and North Africa region, accounting for about half of the country's steel production.
