Iran continues to inch closer to overtaking India as the world’s largest direct reduced iron producer, registering 36% year-on-year output growth in February to 1.45 million tonnes, according to the latest World Steel Association data. India’s DRI production that month fell 6% to 1.47mt.

Iran is on course to commission a host of new DRI-based merchant billet mills by mid-2016. This occurs as it seeks to increase its crude steel capacity from the current 17m t/year to an ambitious 50m t/y by 2025. The latest is Sirjan Iranian Steel Co.'s 960,000 t/y “Bardsir” DRI plant, commissioned last month (see Kallanish 12 February). Shadegan Steel, meanwhile, expects to launch its 800,000 t/y unit by mid-2015.

Last December Iranian industry, mines and trade ministry deputy minister Mehdi Karbasian said Iran aims to become the world’s largest producer of DRI by 2025. However, it currently needs to import pellets because it has insufficient domestic production capacity.

India, meanwhile, is suffering from a local shortage of iron ore and coal after the government last year shut down or cancelled numerous ore mines or coal blocks. India’s DRI plants are coal-based.

Saudi Arabia was the Middle East’s second-largest DRI producer last month, when steelmaking giant SABIC produced 413,000t of the metallic, up 2%. United Arab Emirates’ output was up 14% to 236,000t. Last year plantmaker Tenova completed a capacity expansion of sole producer Emirates Steel's two DRI plants from 1.6m t/y to 2m t/y each. Qatari DRI output declined 1% to 209,000t in February.

Egypt’s DRI production declined 14% to 200,000t in February. Gas shortages have hampered the start-up of substantial new DRI capacity in Egypt, which was slated to come on line in the last twelve months, and led to the decline in output. Ezz Steel is Egypt’s main DRI producer.