Iran’s DRI Market Outlook Report
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Direct-reduced iron (DRI) is produced in a solid process that converts iron ore pellets or fines into pure iron by reducing them using reducing agents. DRI products are divided into three categories based on shape and appearance: sponge iron, briquettes, and fine; fine is usually used as cold-briquetted iron. DRI can also be categorized based on production process: direct-reduced using coal, and direct-reduced using natural gas. A major part of the Middle East as one of the most important sources of natural gas has been dominated by DRI products using natural gas.
Product Description
With a GDP of $415 billion in 2019, Iran was the third largest economy in the region that year. While the country’s economy was steadily growing after the drop in 2012 due to the sanctions, it dipped once again in 2019 thanks to the return of the sanctions. Iran’s massive iron ore reserves have been strong drivers of developments in the iron and steel industry; the country is the largest producer of iron ore in the region. Steel output in Iran has increased significantly over the past years; the country was the tenth largest producer on a global scale in 2019.
Market drivers of Iran’s DRI
About 88% of Iran’s steel is produced in electric furnaces using scrap or DRI as raw materials. Currently, sponge iron is the main feed for electric furnaces in the country. Thus, the development of the country’s iron and steel industry will support demand for sponge iron and drive further development in the sector. It should be noted that the Iran Vision 2025 has set a target of 55 million tonnes for crude steel capacity by 2025.
Ferrous scrap is the only substitute for sponge iron in the production of crude steel using electric furnaces; despite higher prices compared to sponge iron, using scrap has advantages that can restrict the sponge iron market. Scrap not only increases the recovery rate of steelmakers, it also requires less alloying owing to its existing alloy content. However, due to the tight availability of scrap in Iran and the challenges of imports, the impact on the sponge iron market is subdued.
Stockpiling sponge iron involves high levels of risk, and its transportation requires certain conditions. This incurs additional costs for storage and transportation. Thus, sponge iron supply is more heavily dependent on domestic demand compared to other products.
Overview of Iran’s DRI market
Thanks to the abundant availability of natural gas, Iran has been recognized as one of the largest producers of sponge iron in the world; it claimed the first place in 2019. As steelmaking capacity increases, demand for sponge iron is expected to strengthen. However, the availability of iron ore pellets as raw material for sponge iron will tighten. Therefore, raw material availability is expected to be a restricting factor, also putting pressure on demand growth. As a result, the market is forecast to be facing supply deficit.
Breakdown of Iran’s DRI market
Iran’s DRI market is divided into sponge iron and briquettes. Since briquettes are less porous than sponge iron, they are also easier to transport. Due to this, hot-briquetted iron takes a sizeable share in total DRI trade.
Key players in Iran’s DRI market
- Mobarakeh Steel Company
- Hormozgan Steel Co
- South Kaveh Steel Co.
- Khuzestan Steel Co.
- Middle East Mines and Mineral Industries Development Holding Company (MIDHCO)
- Gol-Gohar Iron & Steel Development Co.
- Chadormalu Mining and Industrial Co.
Additional Information
Industry | DRI and HBI |
---|---|
Region | Iran |
Report Type | Industry Report |
Specifications
Report Attribute | Details |
The base year for estimation | 2021 |
Historical data | 2011-2020 |
Forecast period | 2021-2040 |
Quantitative units | Value in USD and Volume in Tonne |
Report coverage | Market Overview, Dynamics, Market Outlook, Risks to Forecast, Consumer Market, Industry Overview, Market Landscape, Competitive Landscape, Market Attractiveness, External Macro Environment Analysis |
Segments covered | Source, Composition, Type, Application |
Pricing and purchase options | Please explore our purchase options to meet your exact research needs. |
Reasons to Buy
- Recognize the geographical distribution of import demand
- Identify the current and future key players of the trading market
- Achieve a better insight on potential target markets
- Understand the behavior of major suppliers/customers either globally or regionally
- Identify competitors as a feed for market analysis
Table of Content
- Executive summary
- Introduction
- Objective
- Market under study
- Product
- Product specifications
- Consumption structure
- Applications
- Physical properties
- Subjects discussed
- Geographical scope under study
- Study timeframe
- Study currency
- Potential audience
- Market dynamics
- Market drivers
- Restraints
- Opportunities
- Challenges
- Market overview
- Market size
- Industry capacities
- Existing capacities
- Capacity distribution
- Geographical distribution of capacities
- Future capacities
- Existing capacities
- Output
- Output trends
- Operating rates
- Consumption
- Consumption trend
- Consumption Share of domestic product
- Trade
- Exports
- Imports
- Trade balance
- Market balance
- Market breakdown by product type
- Market breakdown by product type
- Market breakdown by application
- Inventory
- Producers inventory
- Consumers inventory
- Traders inventory
- Market outlook
- Market factors
- Raw materials
- Costs and prices
- Competition
- The government
- Other factors
- Future scenarios
- Risks to forecast
- Market factors
- Consumer markets
- End-user markets
- Building construction
- Infrastructure construction
- Transportation manufacturing
- Industrial equipment manufacturing
- Durable goods manufacturing
- Consumable goods manufacturing
- Direct consumer markets
- Major Direct consumers
- Existing capacities
- Drivers
- Major Direct consumers
- End-user markets
- Export potentials
- Destinations
- Trade and insurance costs
- Import market suppliers
- Producers potential share
- Destinations
- Industry overview
- Raw materials
- The supply volume of raw materials
- Supply channels of raw materials
- Raw materials procurement costs
- Cost structure of producers
- Production cost curve
- Industry value added
- Generated new scrap
- Technology
- Raw materials
- Market landscape
- Domestic sales markets
- Pricing in the domestic market
- Potential domestic demand
- Trade agreements for imports
- Foreign suppliers
- Foreign sales market
- Prices
- Potential markets overview
- Trade agreements for exports
- Foreign customers
- Domestic sales markets
- Competitive landscape
- Producers
- Company profile
- Revenue structure
- Gross profit margins
- Capacity, output and sales
- Consumers
- Company profile
- Revenue structure
- Gross profit margins
- Capacity, output and sales
- Producers
- Market attractiveness
- Industry rivalry
- Threat of new entrants
- Threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
- Conclusion of Porter analysis
- PESTEL analysis
- Political factors
- Economic factors
- Social factors
- Technology factors
- Environmental factors
- Legal factors
- SWOT analysis
- Large-scale companies with favorable conditions
- Short-term strategies
- Long-term strategies
- Large-scale companies with unfavorable conditions
- Short-term strategies
- Long-term strategies
- Small enterprises with favorable conditions
- Short-term strategies
- Long-term strategies
- Small enterprises with unfavorable conditions
- Short-term strategies
- Long-term strategies
- Large-scale companies with favorable conditions
List of Figures
- Output and consumption; 2011-2020
- Market share of product applications; 2020
- Market surplus; 2020-2040
- Production process flowchart
- Market size; 2011-2040
- Existing capacity; 2011-2020
- Capacity distribution; 2020
- Geographic distribution of capacities; 2020
- Development of future capacity; 2011-2040
- Amount of output; 2011-2040
- Operating rates of production plants; 2011-2040
- Amount of consumption; 2011-2040
- Consumption share of domestic product; 2011-2040
- Exports of product; 2011-2020
- Imports of product; 2011-2020
- Historical trade balance; 2011-2020
- Future Market balance; 2021-2040
- Market output breakdown by alloy type; 2011-2040
- Market consumption breakdown by alloy type; 2011-2040
- Market balance breakdown by alloy type; 2011-2040
- Market output breakdown by product type; 2011-2040
- Market consumption breakdown by product type; 2011-2040
- Market balance breakdown by product type; 2011-2040
- Market consumption breakdown by application; 2011-2040
- Inventories of raw materials and products at producers factories; 2011-2020
- Consumers’ inventory of product; 2011-2020
- Traders’ inventory; 2011-2020
- Production forecast, according to raw materials and sales analysis; 2020-2040
- Market surplus; 2020-2040
- The share of end-user industries in the consumption; 2011 and 2020
- Changes in the end-consumption of extrusion products; 2020 vs 2040
- Applications in building construction industry; 2020
- Applications in infrastructure construction industry; 2020
- Applications in transportation manufacturing industry; 2020
- Applications in industrial equipment manufacturing industry; 2020
- Applications in durable goods manufacturing industry; 2020
- Applications in consumable goods manufacturing industry; 2020
- Capacity distribution structure of direct consumers; 2020
- Existing capacities of direct consumers in each province; 2020
- Suppliers of the export potential destination; 2020
- Historical exports to the export potential destination and future potential; 2016-2040
- Up-stream domestic supply; 2011-2020
- Raw materials domestic supply; 2011-2020
- Supply channels of producer plants
- Spot price of raw material in the market; 2011-2040
- Cash cost structure for production the product; 2020
- Production cost curve of the plants; 2020
- Gross value added of the industry; 2011-2020
- Generated new scrap; 2011-2020
- Sales channels
- Realized price of the product in the market; 2011-2040
- Potential demand of each province; 2020
- The main foreign suppliers to the market; 2011-2020
- FOB price vs domestic market; 2011-2040
- Map of global major importers > 20,000t; 2020
- Major foreign customers; 2011-2020
- Revenue structure of the producers; FY2020
- Sales income and gross profit margin of the producers; FY2011-2020
- Output and sales of the producers; FY2011-2020
- Revenue structure of the consumers; FY2020
- Sales income and gross profit margin of the consumers; FY2011-2020
- Output and sales of the consumers; FY2011-2020
- SWOT matrix for large-scale companies with favorable conditions
- Strategies positioning for large-scale companies with favorable conditions
- SWOT matrix for large-scale companies with unfavorable conditions
- Strategies positioning for large-scale companies with unfavorable conditions
- SWOT matrix for small enterprises with favorable conditions
- Strategies positioning for small enterprises with favorable conditions
- SWOT matrix for small enterprises with unfavorable conditions
- Strategies positioning for small enterprises with unfavorable conditions