TEHRAN- Production of steel ingot by the subsidiaries of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and the other major companies active in the mining sector has increased seven percent during the first ten months of the current Iranian calendar year (March 20, 2020 – January 19, 2021), compared to the same period of time in the past year.

As reported, the mentioned producers have produced 18.75 million tons of steel ingots during the ten-month period.

Although, the production of steel ingot during the tenth month of this year (December 21, 2020 – January 19, 2021) has fallen four percent from that of the same month in the past year.

Steel ingot output stood at 1.681 million tons in the tenth month of this year.

Production of steel ingot in Iran has risen 13 percent during January-November, 2020, according to the latest report released by the World Steel Association (WSA).

It is while the crude steel output in the world has decreased 1.3 percent in the mentioned time span.

The WSA’s report said that Iran has produced 26.369 million tons of crude steel during the 11-month period of 2020, while the figure was 23 million tons in the same time span of 2019.

The country’s monthly crude steel output stood at 2.575 million tons in November 2020, rising 14 percent from 2.256 million tons in November 2019.

Production of steel ingot in Iran is expected to surpass 30 million tons in the current Iranian calendar year, Deputy Industry, Mining, and Trade Minister Darioush Esmaili has announced.

Saying that Iran is currently the world’s 10th biggest steel producer, the official underscored that the country is planning to rise to 8th place by the Iranian calendar year 1404 (starts in March 2025).

He said the Industry Ministry has it on the agenda to increase the country’s steel ingot production to 55 million tons by 2025, for which 160 million tons of iron ore is required annually.

“Given the country's 2.8-billion-ton iron ore reserves, we need new explorations in this field, because when the annual steel ingot production capacity reaches 55 million tons, the current production levels of iron ore can only supply the industry for 12 to 13 years,” the official stated.

He further noted that over 90 million tons of iron ore were produced in the country during the previous Iranian calendar year (ended on March 19) of which only seven percent was exported.

The reduction in the exports of iron ore came as the Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei has urged the government to prevent the exports of raw minerals in order to be processed in the country for making products with more added value.

Following the leader’s remarks, the government levied a 25-percent duty on the exports of raw minerals (especially iron ore) since late September 2019.

The industry ministry believes that the duty is going to encourage the production of more processed minerals such as pellets and concentrate instead of selling the raw minerals.

Industry, Mining, and Trade Ministry has announced that production of iron ore concentrate in Iran reached 47.306 million tons in the previous Iranian calendar year, registering a four-percent rise compared to the preceding year.

Iran’s export of steel products in the past Iranian calendar year rose 27 percent compared to its preceding year.

As reported, the country’s major steel producers managed to export about 7.33 million tons of the products in the previous year.

MA/MA