Iran’s Crude Steel Output Rises by 18% in 2018

According to a recent report by the WSA, Iran has pushed aside Italy, Taiwan and Ukraine to become the 10th biggest producer of crude steel in the world for the year 2018.

In its latest report, the WSA has put the global crude steel production for the year 2018 at 1,808.6 million tons (Mt), which shows a 4.6% increase compared to 2017.

According to the report, Iran’s crude steel industry has remained in good shape despite the US sanctions.

Iran produced 25.0 Mt in 2018, showing a 17.72% increase compared to 2017 (21.2 Mt).

Iran’s share of global crude steel production has been estimated at 1.38% for the year 2018.

Based on the report, the second to ninth places went to India, Japan, the US, South Korea, Russia, Germany, Turkey and Brazil with 106.46 million tons, 104.33 million tons, 86.7 million tons, 72.46 million tons, 71.68 million tons, 42.44 million tons, 37.31 million tons and 34.73 million tons respectively.

According to the Islamic Republic's Vision Plan, the country's total steel production capacity is to hit 55 million tons a year by 2025, with exports figure expected to reach 10-15 million tons.

In a very recent move to further increase the country’s steel production, 2 big steel plants, a direct reduction iron (DRI) and a steel pelletizing plant, were officially inaugurated by Iranian First Vice-President Eshaq Jahangiri in the Southeastern province of Kerman on Tuesday.

The two plants, built with more than half a billion dollars of investment, will add 1 million tonnes of DRI, otherwise known as sponge iron, and 2.5 million tonnes of iron ore pellets to Iran’s burgeoning steel production.

The first plant commissioned Tuesday was the Butia pelletizing near the city of Kerman which has been producing pellets on a trial basis since April.

Jahangiri then traveled to Bardsir to open its 1 million-tonne DRI plant for production of billets and blooms.

The construction of Bardsir Steel with some $357 million marked the application of localized technology in design, installation and commissioning of a 140-tonne electric arc furnace as well as ladle furnace and a continuous casting machine.

Eaerlier in mid-November, a customs office report said that Iran has considerably boosted exports of sponge iron and steel products from its Southeastern province of Hormuzgan in a seven-month period.

"Over $508 million of sponge iron and steel have been exported through the province's customs in the first seven months of the current Iranian calendar year (March 21, 2018-October 23, 2018) showing a considerable rise as compared to last year's corresponding period,"  Hormuzgan Customs Administration reported.

The customs report noted that the major part of the exports was destined to Thailand, Brazil, Indonesia, China, and Italy.

With three steel manufacturing companies and the capacity of producing over five million tons of steel, Hormuzgan is the third major producer of steel in the country.

In a relevant development in early July, the Iranian Ministry of Industry, Mine and Trade announced that the country had considerably increased the production of crude steel in a nine-month period.

"Over 29,976 million tons of crude steel and steel products have been produced during past nine months," the ministry said.

Domestic steelmakers aim to increase crude steel output capacity to 55 million tons per year as per targets set by the 20-Year Vision Plan (2005-25).

Currently, Iran ranks 13th in terms of steel production in the world.

In its latest report, World steel Association (WSA) put Iran’s steel production volume in the first three months of the current year in 2018 at 47 percent growth.

Iran managed to produce 2,350,000 tons of steel in March 2018, showing a significant 43.7-percent growth.

According to statistics, crude steel production volume in the world registered a considerable four percent (4%) growth. Totally, steel production volume in the world recorded a 4.1 percent hike in the first three months of the current year in 2018.

Japan, India and the United States with 44.22 million tons, 44.12 million tons and 34.85 million tons, respectively ranked second, third and fourth, the report added.

Global steel production in May amounted to 154.86 million tons, showing an increase of 4.7 percent compared with the figure for April which was 147.89 million tons.

WSA is the international trade body of the iron and steel industry. The association represents approximately 170 steel producers, including 17 of the world’s 20 largest steel companies, national and regional steel industry associations and steel research institutes. WSA's members account for around 85 percent of world steel production.