Iran, one of the largest producer of DRI in world has witnessed an increase in DRI production. Iranian steelmakers and iron ore companies are actively working on the expansion of iron ore processing and direct reduced iron capacities to fulfill the government’s plan for a massive expansion of steel production to 55 MnT per year.
Major steel manufacturers of Iran has produced 15,840,883 MT DRI during first 10 months of current Persian year (21 Mar- 20 Jan’18). Production was up by around 14% Y-o-Y against around 13,858,000 MT produced in last Persian year.
Mobarekah Steel was the largest manufacture of DRI in Iran during current Persian year, the company produced around 6,127,022 MT DRI, registered a growth of 10% Y-o-Y against 5,570,020 MT produced in last Persian year.
Khouzestan Steel was the second largest DRI producer during the current Persian year. The company exported around 3,404,450 MT DRI in current year by registering a growth of 10% Y-o-Y against 3,094,956 MT produced in last Persian year.
Other major producers includes HOSCO (1,297,474 MT), South Kaveh Steel (1,285,232 MT), Khorasan Steel (1,019,884 MT) and Saba Steel (932,277 MT).
Minister of Industry, Mine and Trade Mohammad Shariatmadari said that Islamic Republic of Iran is the first producer of Direct Reduction Iron (DRI) in the world. Given the above issue, production of sponge iron (Direct Reduction Iron, DRI) dubbed “Hope and Prudence” hit 19 million tons. Given the capacity facing ahead, production of sponge iron will exceed 21 million tons.
Iran Billet Production by Major Steel Companies Increases by 5% Y-o-Y
Major Iranian steel manufacturers has produced 5,896,287 MT of billet and bloom during the first 10 months of current Persian year, registered a growth of 5% Y-o-Y against 5,615,944 MT produced in last Persian year.
Khouzestan Steel Company was the largest producer of billet and bloom in current Persian year, the company produced 1,994,598 MT of billet and bloom during the period, registered a growth of 6% Y-o-Y against 1,887,420 MT during the same period but last year.
Esfahan Steel Company was the second largest producer of billet and bloom in current Persian year. The company produced 1,898,304 MT bloom in current Persian year, by registering a growth of 3% Y-o-Y against 1,843,014 MT produced in last Persian year.
Khorasan Steel was the third largest producer of billet and bloom, followed by South Kaveh Steel and Iran Alloy Steel Company with production of 675,848 MT billet, 650,861 MT billet and 341,265 MT bloom.
| Billet and Bloom Production | Last Persian Year | Current Persian Year | Y-o-Y |
| Khouzestan Steel – Billet | 1.89 | 1.99 | 6% |
| ESCO – Bloom | 1.84 | 1.90 | 3% |
| Khorasan Steel Billet | 0.54 | 0.68 | 26% |
| South Kaveh Steel Billet | 0.65 | 0.65 | 0% |
| Iran Alloy Steel Company – Bloom | 0.32 | 0.34 | 6% |
| Chadormalu Mining & Industrial Co. – Billet | 0.29 | 0.29 | 0% |
| Iran National Steel Industrial Group – Billet | 0.08 | 0.04 | -49% |
Source: Commodities, SteelMint Research
Iran Slab Production by Major Companies Increases by 14% Y-o-Y
Mobarekah Steel Company was the largest producer of Slab during the first 10 Months of current Persian year. The company produced 5,426,971 MT during the period, registered a growth of 14% Y-o-Y against 4,760,501 MT produced in last Persian year.
Hormozgan Steel, a subsidiary of MSC, was the second largest producer of slab in the nation during the period. The company produced 1,162,777 MT of slab in current Persian year, registered a growth of 28% Y-o-Y against 908,420 MT produced in last Persian year.
Khouzestan Steel was the third largest producer of slab in current Persian year, followed by Saba Steel. The companies produced 1,149,353 MT and 622,839 MT respectively with growth of 4% and 14% Y-o-Y respectively.
Inputs taken from Planner
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