Iranian Steel Growth Causes DRI Deficit

Iranian steel production rose 10% year-on-year in the 11 months to Feb.19 to 25 million tonnes, according to a report from the Steel Producers Association of Iran (ISPA) published on its online portal Chilan.

Billet production was 15.3 million tonnes and slab production was 9.6 million tonnes.

Production of finished steel during this period increased by 5% to 18.35 million tonnes. The production of long products increased by 6% to 9.2 million tonnes, of which 7.5 million tonnes fell on rebar. Production of flat products increased by 5% to 9 million tonnes. Hot-rolled steel production increased 3% to 7.5 million tonnes, while cold-rolled coil production rose 2% to 2.4 million tonnes and flat steel production rose 24% to 1.57 million tonnes.

This year, the ISPA noted a "... wonderful" equal growth rate between crude steel and a direct decline in iron production, leading to a DRI deficit in recent months.

According to the latest data, ISPA exports for ten months through January 20, Iranian semi-finished products exports rose 47% year-on-year to 5.82 million tonnes and rolled steel shipments rose 25% to 2.98 million tonnes. Despite the deficit, DRI exports rose 76% to 886,000 tons. Exports of iron ore pellets increased by 19% to 2.42 million tonnes.