Iran, which ranks 15th in the world’s crude steel production, is all set to develop its crude steel capacity and now focusing on development of suitable infrastructure for fulfillment of the vision.
The existence of rich magnetite Iron ore mines (54-58% total Fe and high S & P) and beneficiation facilities to make the value added product Iron Pellet, coupled with low cost natural gas and electricity, is the distinguished advantage of the production of crude steel in the country through EAF route.
|
DRI Plants Expected Capacity till 2016 |
|||
|
Plant Name |
Location |
Capacity |
Year (E) |
|
Mobarakeh Steel (MSC)-Kharazi Mod 2 |
Mobarakeh |
1.5 |
2014 |
|
Gol-e-Gohar |
Sirjan |
1.0 |
2014 |
|
Gol-e-Gohar Mod 1 |
Sirjan |
1.7 |
2014 |
|
Saba Persian Gulf |
Bandar Abbas |
1.5 |
2015 |
|
NISCO-CHBK |
Chahar Mahal |
0.8 |
2015 |
|
NISCO-SABZ |
Sabzevar |
0.8 |
2015 |
|
NISCO- Gayenath |
Chahar Mahal |
0.8 |
2015 |
|
NISCO-Bafgh |
Bafgh |
0.8 |
2015 |
|
Ardakan |
Ardakan |
0.9 |
2015 |
|
Gol-e-Gohar Mod 2 |
Sirjan |
1.7 |
2016 |
|
Chadoramalu |
Yazd |
1.5 |
2016 |
|
Total |
|
13 |
|
An additional 6 MnT pa DRI capacity is expected to come up till 2018
Installed Capacity in MnT pa
E – Expected
Source: SteelMint Research
Iran is the world’s 2nd largest DRI producer and increasing its mines, Iron Pellets and DRI capacity which enables the steelmakers to increase their capacities without worrying about how to procure their raw materials.
Iron Pellet Capacity likely to touch 67.5 MnT pa in 2018
Iran’s Pellet capacity which is 20.4 MnT pa presently, is expected to more than triple in 2018 owing to ample availability of low grade Iron ore. In 2013, it became the 4th largest Iron ore exporter to China.
Though, the country will continue to face an acute shortfall in Pellets till 2017 despite expansion plan, it is expected to see an oversupply the next year because of huge capacity expansion.
Iron Pellet Capacity (MnT pa) Expansion till 2018
In Sirjan alone, which is about 400 km far from Bandar Abbas (one of the biggest sea port in Iran), about 22.5 MnT pa Pellet capacity is anticipated to come up. Therefore, Iran may witness Pellets export possibility with about 14.4 MnT pa of total excess material then.
|
Year |
DRI Capacity |
Pellet Capacity |
Pellet Requirement |
Shortfall |
|
Current |
17.6 |
20.4 |
25.5 |
-5.1 |
|
17.6 |
20.4 |
25.5 |
-5.1 |
|
|
2016 |
13 |
10.1 |
18.9 |
-8.8 |
|
Total |
30.6 |
30.5 |
44.4 |
-13.9 |
|
30.6 |
30.5 |
44.4 |
-13.9 |
|
|
2018 |
6 |
37 |
8.7 |
+28.3* |
|
Total |
36.6 |
67.5 |
53.1 |
+14.4* |
*28.3 MnT of excess Pellet in 2018 is likely to meet the shortfall of 13.9 MnT in 2016. Hence, the rest 14.4 MnT Pellet may be available for export purpose.
Capacity in MnT pa
Source: SteelMint Research
Iranian DRI plants may not be dependent on Pellet imports in future, which are quite costly as compared to domestic Pellet procurement and will have an added advantage to export a value added product.
Leave a Reply