News ID: 302326
Published: 0128 GMT April 20, 2021

Iran reports 9% rise in annual sponge iron output

Iran reports 9% rise in annual sponge iron output

Iron mills churned out a total of 30.52 million tons of sponge iron in the Iranian year to March 20, an increase of nine percent compared to the previous year, according to a report by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).

The Mobarakeh Steel Company was responsible for a bulk of the production at nearly 7.3 million tons, said the report, Press TV reported. 

It added that production had risen by nine percent to 2.676 million tons in the final months of the year compared to the month to late February.

Sponge iron or what is technically known as direct-reduced iron (DRI) is a main feedstock used alongside steel scrap to produce various steel products in electric arc furnaces.

Iran is a leading producer of DRI in the world as it came second to India in 2019 with an annual production of nearly 28 million tons.

Iron mills had recorded a six percent increase in sponge iron output year on year on in late March 2019.

Increased output of steel ingredients has helped boost Iran’s steel production amid government efforts in recent years to prevent rising iron ore sales to producers in other countries.

IMIDRO data suggest Iran plans to inaugurate seven major iron mills across the country in the year to March 2022 to add another 800,000 tons of capacity to its DRI production.

Iranian steelmakers churned out over 29 million tons of crude steel in 2020, according to statistics released by the WSA in January.

The statistics show a 13.3 percent rise for Iran compared to the corresponding figure of 2019, which stood at 25.6 million tons.

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 the exports figure expected to reach 10-15 million tons.

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