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Iran has posted 7% year-on-year increase in production of various steel products. including bars. rods. profiles. sheets and plates. while the country’s output of crude steel. including blooms. billets. and slabs. had grown by five percent.
Iran’s ministry of industry issued a report showing that production of crude steel. including blooms. billets. and slabs. had increased by five percent in the eight-month period ending on November 21 to reach a total of 17.424 million tons.
The report said that mills across Iran had produced 13.556 million tons of various steel products. including bars. rods. profiles. sheets and plates. an increase of seven percent compared to the March-November period in 2018. when output stood at 12.635 million tons.
It said production of direct reduced iron. also known as sponge iron. had reached 18.552 million tons in late November. up seven percent compared to the previous year.
The statistics are the latest to prove that Iran’s metals sector is booming despite a series of bans imposed by Washington since May this year seeking to hamper the country’s efforts to develop the steel mills and make them more export-oriented.
Iran has stated that the sanctions have failed to affect plans for increased output as the country seeks to improve its position as a major steel producer in the world.
Output of various steel products was down year-on-year over the summer months and before the government imposed a harsh tariff on exports of raw iron.
That allowed major steel mills in central and Southern Iran to increase production and think of better markets for exports.
Last Saturday. Deputy Minister of Industry. Mine and Trade Khodadad Gharibpour said that Iran is planning to produce 28 million tons of steel in the coming months despite the unilateral sanctions re-imposed by the US on the country.
“Given the indigenized technical knowhow and knowledge made in Iranian mines and mineral sector. Iran’s steel industry has been less unfazed as a result of the US sanctions imposed on the country.“ he added.
Gharibpour. also Chief Executive of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO). said that the country has managed to export over six million tons of steel in the first half of the current year (March 21. 2019 to September 22. 2019).
He noted that IMIDRO has concluded separate contracts with reliable universities and academic centers of the country for indigenizing technical knowhow in mining sector. he said. adding. “For this purpose. IMIDRO has executed a number of 18 research projects in the first half of the current year. showing a twofold hike as compared to the last year’s corresponding period.“
Iran is currently among the 10 leading producers of steel in the world. International surveys have shown that the growth of steel output in Iran for the past three years has outpaced a global rate of 3.5 percent. That has come despite a direct ban imposed by Washington on the country’s trade of metals since May this year.
Back in February. Iran started the construction for a giant steel mill in the country’s Northwestern province of East Azerbaijan where a budget of 1.1 trillion rials ($26 million) had been allocated for the project by the private sector.
On January 26. the Steel Association`>.World Steel Association (WSA) announced that Iran ranked 10th among crude steel producers in the world in 2018 with 25 million tons of production. with a 17.72% rise compared with 2017.
Iran has pushed aside Italy. Taiwan and Ukraine to become the 10th biggest producer of crude steel in the world for the year 2018.
The WSA has put the global crude steel production for the year 2018 at 1.808.6 million tons (Mt). which shows a 4.6% increase compared to 2017.
According to the report. Iran’s crude steel industry has remained in good shape despite the US sanctions.
Iran produced 25.0 Mt in 2018. showing a 17.72% increase compared to 2017 (21.2 Mt).
Iran’s share of global crude steel production has been estimated at 1.38% for the year 2018.
Based on the report. the second to ninth places went to India. Japan. the US. South Korea. Russia. Germany. Turkey and Brazil with 106.46 million tons. 104.33 million tons. 86.7 million tons. 72.46 million tons. 71.68 million tons. 42.44 million tons. 37.31 million tons and 34.73 million tons respectively.
According to the Islamic Republic`s Vision Plan. the country`s total steel production capacity is to hit 55 million tons a year by 2025. with exports figure expected to reach 10-15 million tons.
