Surging production in Iran lifted April’s direct reduced iron output in the four Middle Eastern countries covered by worldsteel’s monthly report by 14% on-year to 2.23 million tonnes, Kallanish learns from the steelmaker’s association.

Iran reported a 44% on-year rise in DRI output in April to 1.43mt. The main reason for this is a low-base effect, as production sank to a year-low in April 2015. Nevertheless, April 2016 saw the highest monthly output since February 2015.

Iran’s largest steelmaker, Mobarakeh Steel set a new monthly DRI production record in the month through 19 April at 649,359t. Iran’s South Kaveh Steel, meanwhile, recently exported its first DRI consignment. Iranian crude steel output in April rose 8% to 1.51mt.

A host of new DRI-based billet plants are coming on line in Iran. Moreover, producers have taken advantage of surging international prices to increase their export sales.

However, Iran’s sole blast furnace-based steelmaker, Esfahan Steel, saw pig iron output fall -14% in April to 166,000t.

Saudi Arabian DRI output in April declined -10% to 405,000t when crude steel output fell -26% to 390,000t. Saudi steel demand has been curtailed by reduced government spending on lower oil prices, while gas-based DRI production is becoming less competitive due to energy subsidy reduction.

United Arab Emirates reported a -32% decline in DRI output to 203,000t in April when crude steel output declined -4% to 241,000t. This suggests more scrap or merchant billet was used as feedstock.

Qatari DRI output fell -8% to 195,000t in April when crude steel output declined -11% to 195,000t.

Four-month Middle Eastern DRI production rose 1% on-year to 8.55mt thanks mainly to strong Iranian output in March and April.

Meanwhile, Egyptian DRI production was flat on-year in April at 210,000t. Crude steel output that month fell -11.5% to 410,000t.

The world’s largest DRI producer, India, meanwhile saw output fall -26% in April to 1.18mt.