Iran to ban iron ore export to fulfill domestic demand - Trade Minister

Iran to ban iron ore exports as it seeks to supply more iron ore to domestic steel producers, SteelMint learned from reliable sources. The new Mines, Industry & trade minister announced regarding banning of iron ore exports on sidelines of some event, sources told SteelMint.

Iran had earlier banned the export of iron ore concentrate from the first month of the current Persian year that started on 21 Mar' 20.

Iran is aiming to produce 160 mn t of iron ore concentrate in order to achieve an aspirational target of 55 mn t of crude steel output as part of its Vision 2025 programme.

Iran produced 47.31 mn t iron ore concentrate in the Iranian calendar year that ended in March while total iron ore output was 64.27mn t.

The decision is less likely to have a major impact on global iron ore trade flow as major importer China had been cutting back on Iranian iron ore purchases due to high tariff since last year. It is to be noted that Iraninan government had imposed an export duty of 25% on iron ore, pellets and concentrates in September 2019.

Iran has also banned import of steel rail with Esfahan Steel Company (ESCO) entrusted with meeting the railway sector's demand, said Hossein Modarres Khiabanim, acting head of Iran's industry, mining, and trade ministry. The ministry is also aiming to supply 1 mn t iron ore pellet produced by the Mobarakeh steel plant to ESCO. He urged Iranian mines to supply more iron ore to steel plants.

New 5mn t pa concentration capacity to start soon

Sangan iron ore complex, a subsidiary company of state-controlled industrial conglomerate IMIDRO, has started trial production at two greenfield iron ore concentrate plants with a total 5mn t pa capacity.

Commissioning of the plant is expected by end of the month, said Ali Amerai, CEO of the Sangan iron ore complex, The plant would supply concentrate to the Mobarekeh Steel Plant (MSC), Iran's largest steel manufacturer.