Iran Steel Output Rises 21%

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Iranian steel mills produced 21.72 million tons of steel in 2017, up 21.4% compared to the year before, according to the latest report sent by World Steel Association to its members, including the Iranian Mines and Mining Industries and Development Renovation Organization.

According to WSA, Iran’s steel output in December grew by 30.2% year-on-year to hit 1.98 million tons.

Iran’s steel sector ended 2017 with the highest production growth among all producers of more than 1 million tons per month.

Considering all producers regardless of output, Iran is ranked 8th and 12th in terms of fastest annual and December YOY growth respectively.

Iran sustained its ranking as the world’s 13th largest producer of steel in 2017. The country is currently placed between Ukraine (12th) with 22.66 million tons and Mexico (14th) with 20 million tons.

Iran produced 20.54 million tons of direct-reduced iron during the year, up 28.3% YOY. December DRI output was up 55.9% to 2.06 million tons.

Also called sponge iron, DRI is produced from the direct reduction of iron ore to iron by a reducing gas made from natural gas or coal. It is most commonly made into steel using electric arc furnaces. About 70-75% of Iranian mills use EAFs.

The world’s 66 steelmakers produced 1.67 billion tons of steel in 2017, up 5.6% YOY.

Global steel output stood at 138.82 million tons in December, indicating a 4.5% increase YOY.

China remained the world’s largest producer last year with 831.73 million tons of steel output. Chinese steel production hit 67.05 million tons in December, registering a 1.8% increase YOY.

Following China were Japan with 104.93 million tons, India with 101.37 million tons, the United States with 81.64 million tons, Russia with 71.34 million tons, South Korea with 71.18 million tons, Germany with 43.56 million tons, Turkey with 37.52 million tons, Brazil with 34.67 million tons, Italy with 24.04 million tons and Taiwan with 23.24 million tons.

Crude steel is defined as steel in its first solid (or usable) form: ingots, semi-finished products (billets, blooms, slabs). This is not to be confused with liquid steel, which is steel poured.

Iran’s steel output stood at 17.89 million tons in 2016, according to WSA. The country aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan that targets annual production capacity of 55 million tons of steel and 20-25 million tons of exports per year by 2025. Iranian steel mills have so far realized more than 60% of the capacity target.

The Islamic Republic’s direct net steel exports reached its highest in 10 years, as it hit 971,000 tons in 2016 and bested all other countries in the Middle East and North Africa region.

In 2007, Iran was MENA’s largest importer of steel and its net exports stood at -11.6 million tons. The figure stood at -674,000 tons in 2015. Save for 2016, Iran has been in negative territory since 2006, although following a steadily upward trend.

Source: FINANCIAL TRIBUNE