Iran, one of the largest DRI manufacturer in MENA region has produced 15,199,000 MT DRI during the first seven months of Persian year (21 Mar-22 Oct’18) as per the data released by ISPA. The nation reportedly witnessed a growth of 21% Y-o-Y in production of DRI against 12,590,000 MT produced in last year. Iran is coming up with many steel capacity expansion projects, among which is Sirjan Jahan Steel Company, which is likely to come up with new DRI production capacity of 1 MnT.
According to Mr. Ali Abbaslou, Managing Director of Sirjan Jahan Steel Company, “the smelting unit of the Sirjan Steel Company with a capacity of 1 MnT is in the pre-launch phase. The unit is waiting for the clearance of the remaining equipment from the customs and is expected to be operational by the end of the year. It is expected that export will start after setting up the smelting unit.
Mr. Abbaslou said that Turkey is a good target for the export of sponge iron in Iran. He added,”Turkey has started replacing scrap with DRI and due to the production of 40 MnT of steel in Turkey, it could be a good target for the Iranian market.
Major Steel Exporter of Iran
1 – Khouzestan Steel Company (KSC) was by far the largest exporter during the period, the company exported around 1,340,735 MT steel during the period. The company registered a downfall of around 14% Y-o-Y. Standalone during the seventh month, export was noted to be around 143,005 down by 16% Y-o-Y.
2 – Mobarekeh Steel Company (MSC) was the second largest exporter of steel during the period, the company exported 717,780 MT in 7 months, registered a growth of 22% Y-o-Y. During the seventh month, company exported 54,130 MT.
3 – Hormozgan Steel Company (HOSCO) was the third largest position of steel exporter in Iran exporting 456,792 MT Slabs during the first seven months, exports were down by 27% Y-o-Y. HOSCO exported 41,626 MT slab in the seventh month.
4 – Esfahan Steel Company (ESCO) exported 606,414 MT of steel during the seven months of current Persian year. Exports were down by 11% Y-o-Y.
Inputs taken from Chilan Online
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