Steel ingots offered in IME stands at 810,000 tons in 3 months

July 14, 2020 - 14:56

TEHRAN- Some 810,000 tons of steel ingots were offered in Iran Mercantile Exchange (IME) during the first quarter of the current Iranian calendar year (March 20-June 20), IRNA reported.

Production of steel ingot in Iran has increased eight percent during the first quarter of this year compared to the same period of time in the past year.

Over 5.702 million tons of steel ingot was produced during the first quarter of the present year.

Production of steel ingot in Iran is expected to surpass 30 million tons in the current year (ends on March 20, 2021), 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 comes 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) as from September 23, 2019.

The 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.

According to Esmaili, 10 years ago Iran exported more than 20 million tons of unprocessed iron ore and the figure fell to a maximum of six million tons last year.

MA/MA

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