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    Support small scale mines in the steel production cycle

    شناسه : 19545 14 مهر 1398 - 11:38

    Following the government’s decision to combat crude mining in the field of mining and to impose a 2% tax on iron ore exports, Isfahan Steel Company, while appreciating the government’s action, announced its readiness to purchase iron ore to support the country’s mines. Cash is an effective measure, especially in support of small mines.

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    Isfahan Iron and Steel Deputy said: Iron ore used should have a grade of Fe above 60, which, given the current conditions and iron deficiency, is currently inevitably used with Fe above 58 . Therefore, Isfahan Steel Company is ready to purchase iron ore (magnetite and hematite) in cash and with each tonnage from any part of the country with FE above 58, sulfur less than two tenths, phosphorus less than two thousandths of aqueous 6. Mines wishing to sell iron ore to the company can contact the Raw Materials and Energy Management Department.

    He said the company needs 6 and a half million tonnes of iron ore, according to this year’s production plan, which is 3 million tonnes, plus precautionary storage. Given that iron smelting uses a tall furnace method, it must necessarily use aggregate iron ore plus agglomerate, and concentrate and pellet fines are used to enrich the grade of iron ore.

    Salehi cited Isfahan’s lack of use of energy subsidies compared to other steel companies, saying that the company enjoys only 25% of the energy subsidy given that it uses the high-furnace method. In the coal-fired high-kiln method, metallurgical coke converts iron ore to smelting, which is more expensive than other methods of producing steel that use cheap and subsidized energy carriers and share energy costs. In this way it is higher in our country.

    He added that the iron smelter now buys coal for about every thousand tomans delivered to the mine. According to the Ministry of Health, the demand for iron is 962kg of coal, without calculating the cost of coking and shipping costs, it requires 962kg of coal. Isfahan Steel Coal, in return for all the coal in the country, which is traditional and non-economical, extracts some form of energy subsidy.

    Isfahan’s Deputy Coal Purchaser added: The only consumption is the major supplier of domestic coal, and due to the poor quality of domestic coal, export opportunities are very limited and difficult.

    Referring to Iran’s three advantages in producing steel including cheap manpower, cheap energy and abundant iron ore mines, he said: “Unfortunately, Isfahan’s iron smelter now lacks these three competitive advantages, and this makes it difficult for this complex industrial complex. has done .

    “Export duties and import tariffs are two common things in the world to control and balance production and markets, as China has set a 20% tariff on ferromanganese and ferrosilicates,” Salehi said, citing a 25% tax rate on iron ore exports. Exports of coke from the country were banned until 2013.

    He added: Given that domestic steel companies were suffering from iron ore deficiency, a 25 per cent tax burden on exports of this product was a necessary step by the government that should be appreciated. In this regard, we hope that the basic export price of iron ore, reasonable prices commensurate with global export prices, should be considered and operationalized by the iron ore mines in order to avoid the deterrent effects of these effects.

    The deputy director of purchasing iron ore, also considered the government’s support plan for raw materials quotas as a good support measure by the government and said: “While appreciating this support move, it should be said that iron ore is needed in this quota. The main iron smelter is ignored and only pellets and concentrates are considered.

    “We hope that the iron ore mines will remember that during the sharp decline in the export price of the iron ore, Isfahan Iron and Steel Company received full support for these mines by receiving all the iron ore produced in the Sangan area mines,” Salehi said.

    Referring to the steel master plan and its impact on the country’s steel chain, he added, “We hope that the master plan will revise the steel production development and vertical and horizontal integration of the mines so that the development will be specialized in the field of work.” Unfortunately, the proceeds from mineral development have now led to the development of steel in the mining units, disrupting the balance and supplying the raw material needs so that the largest mineral producer is now the major consumer of iron ore.

    Isfahan Iron and Steel Deputy Purchaser stated: Allocating 1 million 750 thousand tons of iron ore to smelter Although it provides only about 25% of the company’s iron ore needs, it supports the Government Complex, Ministry of Health, Imidro, Production and Complex. Sangan is appreciated.

    He added: “Unfortunately, due to the shift from payment to credit to prepayment, the liquidity potential of all manufacturing units, whether steel or non-steel, has become very fragile. As the profitability of the manufacturer is brought to a head-to-head point due to the price control of the finished product and the increase in the price of raw materials, parts and equipment, especially transportation, it is difficult to produce in competitive conditions. Sometimes it has become uneconomical, but because of the social consequences of economic sanctions and the maintenance of peace and security in our beloved Islamic Republic of Iran, tooth and nail manufacturers have kept things stable.

    Allocating 1 million and 750,000 tons of iron ore to smelting Although it provides only about 25 percent of the company’s iron ore needs, it is greatly appreciated by support from the State Complex, Ministry of Health, Imidro, Coal Production Company and Sangan Complex.

    He added: “Unfortunately, due to the shift from payment to credit to prepayment, the liquidity potential of all manufacturing units, whether steel or non-steel, has become very fragile. As the profitability of the manufacturer is brought to a head-to-head point due to the price control of the finished product and the increase in the price of raw materials, parts and equipment, especially transportation, it is difficult to produce in competitive conditions. Sometimes it has become uneconomical, but because of the social consequences of economic sanctions and the maintenance of peace and security in our beloved Islamic Republic of Iran, tooth and nail manufacturers have kept things stable.

    Isfahan Steel Purchasing Deputy Director said: “This huge industrial complex currently hosts 31,000 people (14,000 inside the company and 17,000 in coal mines) and indirectly plays an important role in the employment of many. Therefore, in the current economic boycott situation, it is necessary to see the continued use of the remaining capacity of the company through continued supportive and synergistic policies in the steel chain.

     

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