Iran adopts advance technologies in steel production

Development projects in the Iranian steel industries are not proceeding in accordance with the government's plans. There is a shortage of 5-6 million tons of steel per annum and this shortage is increasing steadily. To prevent such a trend, the Iranian government has decided to increase the capacity of steel production to 29 million ton by the end of the 4th socio-economic plan (2010). However, because Iran does not have sufficient coal resources but, on the other hand, has very a large gas deposit (the 2nd largest in the world ), the Iranian steel industry is not able to increase production by using the traditional method of steel smelting – the blast furnace method. That is why the Iranian government has chosen the direct iron reduction method for production in its new, most advanced steel plant projects. Generally most of the world's steel plants (about 80 -90 percent) use the blast furnace method, and therefore coke, for steel production. Although the first Iranian steel plant ( Esfahan steel Co.), which was built by the Soviet Union about 35 years ago, uses a blast furnace, all other Iranian steel plants are employing the direct iron reduction method. One of the plants that have been equipped with the direct iron reduction unit is the Khorasan Steel Co, which is located in the northeast of Iran and has a capacity of 600,000 tons per annum. The direct iron reduction unit was built at the plant in 2003, and allowed it increase steel production without depending on coke supplies. The dependence on raw material supplies is another obstacle in rising steel output at the plant. Nowadays, Khorasan Steel is fully dependent on scrap in steel production. However, it has taken steps to be self-sufficient in raw materials by recently commencing the construction of two sponge iron making units. Each unit has a capacity of 800,000 ton of sponge iron per annum. These two units will supply 85 percent of raw materials, with the balance supplied by scrap.