Posted on 19 Nov 2018
Hormozgan Steel has maintained its slab production target of 1.5 million tonnes in the Iranian year through 20 March 2019, Kallanish learns from the Mobarakeh Steel (MSC) subsidiary. Output in the six months through 22 September rose 6% on-year to 736,000t.
Direct reduced iron production is targeted at 1.62mt after output in the seven months through 22 October increased 2.1% to 972,089t. Moreover, DRI metallisation increased to 95% versus 92% last year.
However, the firm is turning to Chadormalu for supply of iron ore pellets after encountering problems procuring from existing suppliers. Pellets account for around 47% of Hormozgan’s raw material purchases, but “… pellet exports generate more revenue for producers, so producers prefer to export their product, and steelmakers like us now have problems with procuring pellets,” says Hormozgan deputy head Mohammad Jafar Parsi.
According to Iranian Steel Producers Association (ISPA) data, in contrast to falling Iranian exports, Hormozgan’s steel exports in the month through 22 October grew 39% on-year to 41,626t. However, seven-month shipments abroad fell -27% to 456,972t (see Kallanish passim).
