Iran: Iron Ore Pellet Production Falls Marginally in 11 Months

Iran iron ore pellet production for the first eleven month of the current Iranian year (21 Mar'19-19 Feb'20) was recorded at 37.92 MnT ,as per Iranian Mines and Mining Industries Development and Renovation Organization. The output dropped 2% on a yearly basis compared to the same time frame last Iranian year.

SteelMint learned from its reliable sources that COVID-19 has impacted the Iranian economy and raw material trading. However, the impact on production of raw material (especially pellets and concentrate) is minimal.

However, for the eleventh month of the year i.e Feb'20, the pellet output increased marginally by about 1% M-o-M to 3.55 MnT.

Golgohar stood the largest producer of iron ore pellet for the current Iranian year (21 Mar'19-19 Feb'20) with 11.13 MnT (up 1% Y-o-Y), followed by Mobarakeh Steel Company with 6.25 MnT (down 10% Y-o-Y), Khouzestan Steel Company with 5.4 MnT, and MIDHCO with 5.06 MnT. Other producers included Chadormalu with 3.3 MnT , Opal Parsian Sangan with 2.88 MnT and Sangan Mineral and Industrial Company at 2.07 MnT.

The Iranian Ministry of Industries, Mining and Trade is planning to either completely forbid or impose heavy tariffs on iron ore exports in the next Iranian year starting from Mar20. 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.

~ Inputs from Financial Tribune