Direct reduced iron production in the four Middle Eastern countries covered by worldsteel's monthly report grew 10% on-year in April to 2.58 million tonnes, Kallanish notes. It thus recovered from its -5% on-year slump in March that brought to an end seven consecutive months of on-year increase.

The region’s largest producer, Iran, increased DRI output 10% in April to 1.57mt. This supported a crude steel output rise of 15% that month to 1.74mt. Much of Iran’s output growth has been driven by increased steel exports.

Iranian pig iron output, concentrated at sole blast-furnace based steelmaker Esfahan Steel (Esco), rose 16% in April to 192,000t. Esco said last month it is gearing up to increase pig iron output in order to raise exports of the hot metal (see Kallanish 13 April).

DRI production at Saudi Arabia’s largest producer, Sabic, however, dropped -11% in April to 429,000t when crude steel output rose 6.4% to 454,000t. This suggests Sabic used a greater portion of scrap in its feedstock mix. This would tally with the slump in international scrap prices during the second half of March and in April after they reached a 2017-high in early March.

United Arab Emirates’ DRI output surged 74% in April to 353,000t when crude steel output grew 24.4% to 299,000t. The faster DRI growth suggests Emirates Steel may have sold merchant DRI that month, as well as using less scrap as feedstock.

Qatari DRI output was flat in April at 235,000t when crude steel production slumped -11.8% to 186,000t, suggesting Qatar also sold merchant DRI.

Middle Eastern DRI production thus rose 9% on-year in January-April to 9.27mt.

Egyptian DRI output, meanwhile, surged 65% on-year in April to 308,000t, as Ezz Steel’s latest DRI plant continues to ramp up, supporting Egyptian domestic crude steelmaking with increased local feedstock.

Iran remained the world’s largest DRI producer after the four months with 5.61mt, followed by India with 4.93mt and Mexico with 2.04mt.