Iran Aims to Add Another 8-10 MnT Steel Capacity by Next Iranian Year

The Iranian Mines and Mining Industries Development and Renovation Organization announced; Iran's steel production capacity is expected to reach 43.6 MnT by the end of the next Iranian year (March 20, 2021). According to Deputy Minister of Industries; Mining and Trade- Jafar Sarqeini, country's current annual steel production capacity is at 35 MnT.

Meanwhile, the actual production is estimated to hit 31.1 MnT. The country is planning to hit the target by utilizing 71% of the nominal capacity.

The country is heading well toward its aim of hitting the target of 55 MnT by 2025. Multiple steel units with an overall capacity of 10 MnT are currently under construction with a more than 50% physical progress, while another 10 MnT of capacity have been defined. Also, the country is able to produce steel higher than the global average from past 4 years, Jafar Sarqeini quoted.

The steel exports will exceed 11 MnT this year, up 30% from 8.5 MnT last year, he added.

According to the Iranian Steel Producers Association's latest report, steel production in Iran stood at more than 30.98 MnT during the eight months to Nov. 21 to register a Y-o-Y growth of 5.82%.

Semi-finished steel production was recorded at 17.42 MnT of the total output, up 5% Y-o-Y. Billet and bloom made up 10.25 MnT of semi-finished production while slab output hit 7.17 MnT to register an 11% rise and a 3% decline respectively Y-o-Y.

Meanwhile, finished steel output of the country booked a Y-o-Y rise of 7% to reach 13.55 MnT.

Flat steel products had the major share of finished steel production with 6.8 MnT, up 4% Y-o-Y. HRC production was recorded at 5.71 MnT, registering Y-o-Y a growth of 3%, followed by CRC with 1.71 MnT (up 4% Y-o-Y) and coated coil with 1.09 MnT (up 20% Y-o-Y).

Mean while, long steel products production 6.75 MnT, posting a Y-o-Y rise of 9% during the period under consideration. Rebar had a major share with 5.45 MnT (up 9% Y-o-Y), followed by beams with 740,000 MT (up 22% Y-o-Y) and L-beam, T-beam and other types with 556,000 MT (up 9% Y-o-Y).

~Inputs from Financial Tribune