According to an IMIDRO report, large companies’ chain steel production comprising concentrate, pellets, sponge iron, and crude steel has risen in the first four months of the current Iranian year by one, two, 11 and eight percent, respectively, compared to the same period last year, reported Fars News Agency.

During the mentioned period, the production of iron ore concentrates and pellets has topped 16 million tons and 14.7 million tons, respectively, and the production of sponge iron and crude steel has also exceeded 10.5 million and 7.4 million tons, respectively.
According to figures released by the World Steel Association (WSA) on July 23, Iranian steelmakers produced nearly 13.9 million tons of crude steel during the first half of 2020, marking a 10.2 percent rise compared to the figure for the same period of 2019, which was 12.6 million tons.

Iran produced 2.4 million tons of crude steel in June, showing a 5.3 percent increase compared to the figure for the same month of 2019, which was 2.3 million tons.

Iran produced 31.9 million tons of crude steel in 2019, according to the WSA figures released in January.

The country plans to increase its annual steel production capacity to 55 million tons by 2025, with exports expected to reach between 10 million tons and 15 million tons per year.

The WSA is one of the largest and most dynamic industry associations in the world. WSA members represent approximately 85 percent of the world’s steel producers, including over 150 steel producers, with nine of the 10 largest steel companies, national and regional steel industry associations and steel research institutes.

A Thursday report by the IRNA news agency cited figures by the Iranian Steel Producers Association (ISPA) as showing that exports of sponge iron had surged in the 11-month period ending late February by some 86 percent in terms of weight.

The figures showed that iron mills across Iran had shipped a total of 942,000 metric tons of sponge iron over the period, a significant increase compared to a similar period spanning 2018-2019, Press TV reported.

Sponge iron exports in the previous calendar year had declined year-on-year by 25 percent, said the report.

The rising exports of the raw material occur despite a government move in September to impose a 10 percent duty on sponge iron shipments to other countries. The tariff was aimed at preventing a shortage of sponge iron in Iranian steel mills.

However, figures by ISPA showed that the production of sponge iron in Iran had increased to near 25.5 million tons in the 11-month period ending late February, a surge of five percent compared to the previous year.

Domestic consumption of sponge iron in Iranian steel mills also surged by three percent over the period, said the report.

Globally, Iran is second to India in terms of the volume of sponge iron production. The country is the 10th largest steel producer in the world.

Sponge iron production in Iran is expected to increase by two million tons this year with the opening of a large mill in the southern province of Kerman.

That comes after three medium-sized mills with an annual capacity of 800,000 tons apiece were launched in the country last year.