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Continued problems of sponge iron deficiency in years 1 and 2
World markets were facing a shortage of sponge iron pellets in year 5, according to the Economics News. As current production capacities are not able to meet the growing needs due to increased steel consumption worldwide, this trend is expected to continue in years 1 and 2.
World steel production was estimated at 1.5 billion tonnes in year 2, with world production expected to rise to 1.5 billion tonnes by year.
During the year, steel production in arc furnaces was estimated at 5 million tons, which is expected to increase steel production in arc furnaces due to environmental activities to reduce the effects of carbon and other environmental pollutants.
Demand for sponge iron pellets is projected to rise from 3.7 million tonnes per year to 4.7 million tonnes per year. Demand for this product is also expected to reach 2 million and 6,000 tonnes per year and more than 2 million and 4,000 tonnes per year, respectively.
The highest demand for sponge iron pellets is in the Mina region (Middle East and North Africa). Worldwide, the production of sponge iron was recorded at 5.6 million tonnes in January-October.
During this period, the Mina region accounted for the largest share of production, with the production of 2.6 million tons of sponge iron (more than half of total world production). Production in the MENA region increased by 5 million tonnes, representing a 4.7 percent increase over the same period a year earlier.
More than 2% of sponge iron is produced in the Mina area in Iran. Iran’s production of sponge iron in January-October totaled 2.6 million tons, up 4 percent from the same period last year.
Iran’s crude steel production also increased by 2.9 percent to 2.6 million tons over the same period last year. Iran produces most of its steel in arc furnaces. During the year 9, Iran produced 6 million tons of steel, of which 5 million tons were produced through electric arc furnaces.
In Mina, more demand is expected for sponge iron pellets as the 5.7 million tonne sponge iron production plants in Algeria will start operating this year and next year.