Iran Crude Steel Output Rises 10.8%

Iranian steel mills produced 17.89 million tons of crude steel in 2016, registering 10.8% growth compared to the year before, according to a preliminary report  sent by the World Steel Association to its members, including the Iranian Mines & Mining Industries Development and Renovation Organization, and seen by the Financial Tribune.

Iranian steelmakers set a new record last Iranian year (March 2015-16) by exporting more than 4.1 million tons of steel products valued at about $7 billion.

WSA data shows December production stood at 1.52 million tons, indicating a 13.9% rise compared to 2015. However, the December output dropped 3.2% compared to November.

The data also showed Iran’s steel sector was the 6th fastest growing in the world after Serbia with 22.7%, Pakistan 22.8, Greece 31.8%, Libya 39.8%, and Macedonia 62.2%.

Meanwhile, the world’s 66 steelmaking countries continued their slow growth in production, which first began in November after months of shrinking output.

The global 2016 output stood at over 1.6 billion tons, up 0.7% year on year. Global producers also posted growth for December as they manufactured 134.05 million tons, up 5.5% compared to last year’s corresponding period. The December output also rose 1.47% compared to the month before.

China and India were among the few steel giants still growing, which buoys global production along the way. China’s 2016 production rose 1.2% to account for about half the world’s aggregate steel production. India also bolstered output by 7.4%. This is while other global giants such as Japan, South Korea and the United States all recorded diminished output for 2016.

Worldwide standings for 2016 steel production remained unchanged. China kept the top spot with 808.37 million tons, followed by Japan at 104.77 million tons, India 95.61 million tons, the US 78.61 million tons, Russia 70.8 million tons, South Korea 68.56 million tons, Germany 42.08 million tons, Turkey 33.16 million tons, Brazil 30.21 million tons, Ukraine 24.22 million tons, Italy 23.34 million tons and Taiwan 21.57 million tons.

Iran maintained its position as the world’s 14th biggest steelmaker as its 2016 output placed it between Mexico (13th) with 19 million tons and France with 14.63 million tons of crude steel output.

Iran’s steelmakers exported over 4.12 million tons of crude steel and steel products in the nine months to December 20, registering 55% growth compared to last year’s corresponding period, according to IMIDRO.

Domestic producers are expected to boost exports to 5.7 million tons by the end of the current fiscal in March, according to Rasoul Khalifeh-Soltani, the head of Iran Steel Producers Association. According to the official, improvement in global steel prices has driven steel producers to increasingly shift attention to exports.

Iranian steelmakers set a new record last Iranian year (March 2015-16) by exporting more than 4.1 million tons of steel products valued at about $7 billion. Crude steel exports stood at 1.8 million tons.

Iran’s crude steel output stood at 16.1 million tons in 2015. The country aims to become the world’s 6th largest steel producer as per the so-called ‘20-Year National Vision Plan’ (2005-25), which envisions annual production of 55 million tons of crude steel per year by the end of the plan.