Iran: Iron Ore Pellet Production Fall 4% Y-o-Y in Apr'20
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Iran iron ore pellet production for the first month (20th Mar'20-19th Apr'20) of the current Iranian year recorded at 3.66 MnT,as per Iranian Mines and Mining Industries Development and Renovation Organization. The output dropped 4% on a yearly basis compared to the same time frame last Iranian year.
-Golgohar stood the largest producer of iron ore pellets for the month with 1.02 million tons (down 3% Y-o-Y). The miner has reported 12 MnT iron ore pellet output for last Iranian year.
-Mobarakeh Steel Company stood second largest producer with 0.61 MnT (down 9% Y-o-Y), followed by MIDHCO with 0.55 MnT, Khouzestan Steel Company with 0.54 MnT, and Chadormalu with 0.33 MnT. Other producers included Opal Parsian Sangan with 0.29 MnT and Sangan Mineral and Industrial Company at 0.23 MnT.
As per IMIDRO's report, new pellet production units are expected to add a total of 25.92 MnT to the pellet production capacity by FY 23-24.
The upcoming new pellet production units are as follow's:
| Pellet Production Unit | Location | Pellet CapacityPer annum (in MnT) | Expected Start |
| Gohar Zamin Unit (first phase) | Srijan, Kerman Province | 5 | FY 20-21 |
| Sechahun Pellet Plant | Bafq, Yazd Province | 5 | This Iranian Year |
| Pasargad Steel Complex | Shiraz, capital of Fars Province | 2.5 | This Iranian Year |
| Roshtkhar Steel Complex | Khorasan Razavi Province | 1.2 | FY 22-23 |
| Kaveh Pars Company | Khaf, Khorasan Razavi Province | 2.6 | FY23-24 |
| Baft Pellet Plant | Baft, Kerman Province | 2.5 | FY23-24 |
| Sabanour Mining and Industrial Development Company | Kurdestan Province | 0.92 | FY 23-24 |
Source: Financial Tribune
Iran has levied a 25-percent duty on the exports of raw minerals (especially iron ore) since September 23, 2019. The policy of tariffs is mostly to avoid exporting raw iron ore, creating more additional value, and meet the requirements from domestic steel industries. In order to realize the goal of producing 55 MnT of steel per annum, Iran needs 160 MnT of iron ore which necessarily requires the amount of exports to be reduced to favor domestic steel output.
