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 according to data released by World Steel Association. As per ISPA, during the first nine months of current Persian year, the nation produced around 16.54 MnT of DRI registered a growth of 22% Y-o-Y.
Despite the fact that Iran is one of the largest producer of DRI, the contribution of export is only about 3% of the total production. The nation exported around 0.53 MnT of DRI in current Persian year registered a tremendous growth of about 392% Y-o-Y against 0.10 MnT of DRI exported in previous year.
As per Mehdi Karbasian, CEO of IMIDRO, “The country’s DRI production is more than consumption at the moment and a portion of it will be exported”. He added further “Some 1 MnT of DRI will be exported in the current Persian year (to March 2018).”
Major exporters of DRI in Iran are Arfa Iron and Steel Company with the annual production capacity of 800,000 MT DRI, followed by Kish South Kaveh Steel Company with the production capacity of around 1.90 MnT. Kish South Kaveh Steel Company has produced around 1.13 MnT of DRI during the current Persian year. Sirjan Jahan Steel Complex is among the other major exporters of DRI in Iran with the annual production capacity of producing around 2 MnT DRI. Persian Gulf Saba Steel is also one of the major DRI exporter which is planning to commission Phase one Midrex technology with annual capacity of 1.5 MnT of CDRI.
Gulf Nations are the major importers of Iranian DRI
As per the data released by Iran customs, Oman is the largest importer of Iranian DRI. The nation imported around 300,000 MT DRI in 9 months of current Persian year. Another major importers includes Kuwait (123,172 MT), India (63,391 MT), China (24,974 MT) and Spain (12,000 MT).
| Countries | 21 Mar-20 Apr | 21 Apr-21 May | 22 May-21 Jun | 22 Jun-22 Jul | 23 Jul-22 Aug | 23 Aug-22 Sep | 23 Sep-22 Oct | 23 Oct-21 Nov | 22 Nov-21 Dec | Total |
| Oman | – | 76,805 | 26,029 | 25,211 | 20,967 | 65,177 | 43,588 | 45,807 | – | 303,585 |
| Kuwait | 30,372 | 32,500 | 30,300 | 30,000 | – | – | – | – | – | 123,172 |
| India | – | 22,032 | 1,511 | 4,921 | 6,095 | 5,545 | 23,288 | – | – | 63,391 |
| China | – | – | 4,996 | – | 4,978 | – | – | 5,000 | 10,000 | 24,974 |
| Spain | – | – | – | 12,000 | – | – | – | – | – | 12,000 |
| Malaysia | – | – | – | 8,200 | – | – | – | – | – | 8,200 |
| Pakistan | – | – | – | – | – | – | 877 | 1,021 | – | 1,898 |
| Austria | 1 | – | – | – | – | – | – | – | – | 1 |
| Grand Total | 30,373 | 131,337 | 62,836 | 80,332 | 32,041 | 70,721 | 67,754 | 51,828 | 10,000 | 537,221 |
Source: Iran Customs
Months as per Iranian Year
Quantity in MT
Inputs taken from Steel Price
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