1. Home
  2. Steel Raw Materials
  3. Iron Charge
  4. Iran’s DRI Market Outlook Report

Iran’s DRI Market Outlook Report

9,703€

  • TRY: 365,000 ₺

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.

Category: .

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

  1. Executive summary
  2. 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
  1. Market dynamics
    • Market drivers
    • Restraints
    • Opportunities
    • Challenges
  2. Market overview
    • Market size
    • Industry capacities
      • Existing capacities
        • Capacity distribution
        • Geographical distribution of capacities
      • Future 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
  1. Market outlook
    • Market factors
      • Raw materials
      • Costs and prices
      • Competition
      • The government
      • Other factors
    • Future scenarios
    • Risks to forecast
  2. 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
  1. Export potentials
    • Destinations
      • Trade and insurance costs
      • Import market suppliers
      • Producers potential share
  1. 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
  2. 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
  1. 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
  1. Market attractiveness
    • Industry rivalry
    • Threat of new entrants
    • Threat of substitutes
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Conclusion of Porter analysis
  2. PESTEL analysis
    • Political factors
    • Economic factors
    • Social factors
    • Technology factors
    • Environmental factors
    • Legal factors
  3. 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

List of Figures

  1. Output and consumption; 2011-2020
  2. Market share of product applications; 2020
  3. Market surplus; 2020-2040
  4. Production process flowchart
  5. Market size; 2011-2040
  6. Existing capacity; 2011-2020
  7. Capacity distribution; 2020
  8. Geographic distribution of capacities; 2020
  9. Development of future capacity; 2011-2040
  10. Amount of output; 2011-2040
  11. Operating rates of production plants; 2011-2040
  12. Amount of consumption; 2011-2040
  13. Consumption share of domestic product; 2011-2040
  14. Exports of product; 2011-2020
  15. Imports of product; 2011-2020
  16. Historical trade balance; 2011-2020
  17. Future Market balance; 2021-2040
  18. Market output breakdown by alloy type; 2011-2040
  19. Market consumption breakdown by alloy type; 2011-2040
  20. Market balance breakdown by alloy type; 2011-2040
  21. Market output breakdown by product type; 2011-2040
  22. Market consumption breakdown by product type; 2011-2040
  23. Market balance breakdown by product type; 2011-2040
  24. Market consumption breakdown by application; 2011-2040
  25. Inventories of raw materials and products at producers factories; 2011-2020
  26. Consumers’ inventory of product; 2011-2020
  27. Traders’ inventory; 2011-2020
  28. Production forecast, according to raw materials and sales analysis; 2020-2040
  29. Market surplus; 2020-2040
  30. The share of end-user industries in the consumption; 2011 and 2020
  31. Changes in the end-consumption of extrusion products; 2020 vs 2040
  32. Applications in building construction industry; 2020
  33. Applications in infrastructure construction industry; 2020
  34. Applications in transportation manufacturing industry; 2020
  35. Applications in industrial equipment manufacturing industry; 2020
  36. Applications in durable goods manufacturing industry; 2020
  37. Applications in consumable goods manufacturing industry; 2020
  38. Capacity distribution structure of direct consumers; 2020
  39. Existing capacities of direct consumers in each province; 2020
  40. Suppliers of the export potential destination; 2020
  41. Historical exports to the export potential destination and future potential; 2016-2040
  42. Up-stream domestic supply; 2011-2020
  43. Raw materials domestic supply; 2011-2020
  44. Supply channels of producer plants
  45. Spot price of raw material in the market; 2011-2040
  46. Cash cost structure for production the product; 2020
  47. Production cost curve of the plants; 2020
  48. Gross value added of the industry; 2011-2020
  49. Generated new scrap; 2011-2020
  50. Sales channels
  51. Realized price of the product in the market; 2011-2040
  52. Potential demand of each province; 2020
  53. The main foreign suppliers to the market; 2011-2020
  54. FOB price vs domestic market; 2011-2040
  55. Map of global major importers > 20,000t; 2020
  56. Major foreign customers; 2011-2020
  57. Revenue structure of the producers; FY2020
  58. Sales income and gross profit margin of the producers; FY2011-2020
  59. Output and sales of the producers; FY2011-2020
  60. Revenue structure of the consumers; FY2020
  61. Sales income and gross profit margin of the consumers; FY2011-2020
  62. Output and sales of the consumers; FY2011-2020
  63. SWOT matrix for large-scale companies with favorable conditions
  64. Strategies positioning for large-scale companies with favorable conditions
  65. SWOT matrix for large-scale companies with unfavorable conditions
  66. Strategies positioning for large-scale companies with unfavorable conditions
  67. SWOT matrix for small enterprises with favorable conditions
  68. Strategies positioning for small enterprises with favorable conditions
  69. SWOT matrix for small enterprises with unfavorable conditions
  70. Strategies positioning for small enterprises with unfavorable conditions

Related Reports