Iranian crude steel production in the penultimate month of the last Iranian year increased 12% year-on-year to 1.41 million tonnes, Kallanish learns from the Iranian Mines and Mining Industries Development and Renovation Organization (Imidro).

Crude steel output in the eleven months to 19 February rose 9% to 15.59mt. Mobarakeh Steel (without subsidiaries) remained the largest producer with 4.97mt, followed by merchant semis producer Khouzestan Steel with 3.17mt and Esfahan Steel Company (Esco) with 2.53mt. Hormozgan, a Mobarakeh subsidiary, produced 1.07mt, while Saba Steel produced 716,594t and Khorasan Steel 656,840t.

In terms of finished products, output in the eleven months rose 4% to 15.69mt. Mobarakeh again led the way with 4.9mt of hot rolled coil, followed by Esco with 2.38mt of bars and sections and Oxin Steel with 731,798t of wide plate.

Iran is on course to commission a host of new direct reduced iron-based merchant billet mills by mid-2016. This occurs as it seeks to increase its crude steel capacity from the current 17m tonnes/year to an ambitious 50m t/y by 2025. Earlier this month it levied 10-20% tariffs on various steel product imports to curb the perceived influx of steel from China and the CIS (see Kallanish 11 March).

The country is, however, in need of substantial investment into iron ore pelletising capacity to support domestic DRI production designed to feed Iran’s mainly EAF-based steelmakers. Iran currently imports a large portion of its pellet requirement.