Iran’s MSC reports growth in monthly production of steel products

Iran’s MSC reports growth in monthly production of steel products

Production of sponge iron, crude steel and pellets by Iran’s Mobarakeh Steel Company (MSC) during May 21-June 20, 2020 increased by 14.6 percent, 4.8 percent and 0.8 percent respectively year-on-year.

Citing the company’s official website, Trend News Agency reported that the MSC produced 2.27 million tons of raw steel, 2.44 million tons of sponge iron and 1.92 million tons of pellets during the month to June 20, 2020.

During this period, the company’s sales of crude steel increased by 496 percent year-on-year, standing at 19.9 trillion rials (about $475 million).

The value of the company’s sales of cold-rolled steel and galvanized products amounted to 36 trillion rials (about $857 million) in the same time span, indicating a year-on-year growth of 50 percent, according to the report.

The report put the total value of the company’s sales in the month to June 20 at 79.8 trillion rials (about $1.9 billion), which shows a year-on-year increase of 25.8 percent.

On August 2, the Iranian deputy minister of industry, mine and trade said the country’s annual steel production will exceed 30 million tons for the first time in history by the end of current calendar year (March 20, 2021).

Khodadad Gharibpour added Iran is expected to produce 31 million tons of crude steel by the end of the year, IRNA reported.

The official added the domestic steel industry has created 200,000 direct jobs in the country.

Creating every job in the steel production chain, from its beginning to the end, will lead to the generation of 17 indirect and sustainable jobs, said the deputy minister.

This year, he added, following an increase of five million tons, the country’s nominal crude steel production capacity will reach 42 million tons per annum.

“Our country has, at present, an export capacity of more than $4 billion per year,” Gharibpour said.

According to figures released by the World Steel Association (WSA) on July 23, Iranian companies 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, WSA said.

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

Iran 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. Its members represent approximately 85 percent of the world’s steel producers, including over 150 steel producers, nine of the 10 largest steel companies, national and regional steel industry associations and steel research institutes.