The country’s government has set a target for steel production of 55 million tonnes per year by 2025. In 2016, the World Steel Association (Worldsteel) ranked Iran among the top 20 steelmaking nations, when the country’s output came to 17.9 million tonnes.
Currently, Iran has capacity for around 30 million tpy of steel, of which 75% would be from DRI-consuming electric-arc furnaces (EAFs). DRI-based steel production is the preferred method in Iran because the country has extensive reserves of both iron ore and natural gas.
To meet the steel production target of 55 million tpy, market participants estimate that the country must develop capacity for 60 million tpy of DRI and pig iron, 92 million tpy of pellets, 90 million tpy of iron ore concentrate and 159 million tpy of iron throughout the entire value chain from iron ore to crude steel.
This year, the country’s total concentrate capacity reached 50 million tpy....