Iran's DRI output in Q1 up 7% y-o-y

Iran's production of direct-reduced iron (DRI) during the first quarter of the Iranian year of Mar-Jun'21 (fiscal year), stood at 8.59 mn t, up 7% y-o-y. Iran is the world's second-largest producer of direct reduced iron after India.

Top producers

Mobarakeh accounted for the largest share of the output in this period with 2 mn t (down 2% y-o-y), followed by KSC with 1.04 mn t, down 2% y-o-y. In third place was Hormozgan Steel Company with 467,585 tonnes (t), up 16% y-o-y, followed by South Kaveh Steel Company with 459,134 t (up 9% y-o-y) and Chadormalu Steel Company with 446,565 t (up 6% y-o-y).

Output in Jun'21 up 2% m-o-m

DRI production reached 2.71 mn t during the month of Jun'21, indicating a 2% growth y-o-y.

Mobarakeh Steel Company produced 583,849 t of DRI to lead the market during the third month of the fiscal year. However, MSC's monthly output registered a 59% fall y-o-y.

A total of 12.18 mn t of DRI, also known as sponge iron, was produced in Iran during the first five months of 2021 (Jan-May) to register a 1.6% decline compared with the corresponding period of 2020, the latest report released by the World Steel Association shows.

Other highlights

The country has remained the second biggest DRI producer in the world, after its primary rival, India, which produced a total of 16.27 mn t (up 40% y-o-y) during the period under review, according to the World Steel Association.

The world's total DRI output in the first five months of 2021 stood at 42.84 mn t, a 16.3% growth y-o-y.

Mobarakeh Steel Company, located in Isfahan Province, is Iran's biggest producer of sponge iron. MSC is the biggest steel producer in Iran and the Middle East and North Africa region.