Iran, the second largest DRI producer in world has installed 3rd PERED technology equipped DRI plant on 27th Jan’2018. Neyriz Ghadir Steel Company, a subsidiary of Ghadir International Mines and Industries Development Company is the third company to install DRI plant using PERED technology with 800,000 MT capacity. Neyriz steel company’s installation started in 2010. Ghadir Investment Company is the project’s main investor and owns a 65% stake whereas IMIDRO controlling the rest 35%.
Iranian direct-reduction technology called PERED, or Persian Reduction is invented by MME Co., an Iranian engineering company registered in Germany. PERED technology is believed to be very economical in terms of usage and raw materials which ultimately bring down the production cost and is more environmental friendly as compared to other technologies.
The first two company which installed DRI plant by using PERED technology are Shadegan Steel Company and Miyaneh Steel Complex. Shadegan Steel Company started its DRI module in May’17 as the first plant to utilize PERED technology. Miyaneh Steel Complex’s DRI plant was the second producer to use PERED technology, which was installed in Oct’17 with annual production capacity of 800,000 MT, according to IMIDRO.
According to the latest data released by World Steel Association; Iran, the second largest producer of DRI has produced 20.5 MnT of DRI in CY’17 registered a growth of 28.30% Y-o-Y against around 16 MnT produced in CY’16. DRI in Iran is produced from the direct reduction of iron ore to iron by a reducing gas made from natural gas or coal. Usually EAF is used for making DRI to steel, around 70-75% of Iranian steel mills use EAF for steel making.
As per IMIDRO, major DRI producers during the first nine months of current Persian year ( 21 Mar – 21 Dec’17) includes Mobarakeh Steel Company, Khouzestan Steel Company, Hormozgan Steel Company, South Kaveh Steel Company, Saba Steel Company, Khorasan Steel Company, Ghadir Iron and Steel Company and MIDHCO.
| Companies | Last Persian Year | Current Persian Year | Y-o-Y |
| Mobarakeh Steel Company | 5.05 | 5.56 | 10% |
| Khouzestan Steel Company | 2.80 | 3.09 | 10% |
| Hormozgan Steel Company | 0.93 | 1.15 | 24% |
| South Kaveh Steel Company | 0.84 | 1.13 | 35% |
| Saba Steel Company | 0.79 | 0.82 | 4% |
| Khorasan Steel Company | 0.73 | 0.89 | 22% |
| Ghadir Iron and Steel Company | 0.67 | 0.63 | -6% |
| MIDHCO | 0.52 | 0.62 | 19% |
Quantity in MnT
Source: IMIDRO
Inputs taken from Financial Tribune
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