Steel Production In Azerbaijan: An Overview

Azerbaijan's metallurgical production is considered high due to its large deposits of alunite, polymetallic ores, and iron ore. The country's ferrous metallurgy industry includes the extraction of iron, smelting and refining of iron ore, and rolling and ferroalloys production. The Baku Steel Company, the largest metallurgical enterprise in Azerbaijan, has an annual steel production capacity of 1,000,000 tons. In 2014, the country produced 89,600 metric tons of iron ore. While the exact amount of steel produced in Azerbaijan is unclear, it is known that the country exported steel products and that its steel industry is still developing on a small scale.

Baku Steel Company's steel production capacity

Baku Steel Company is the largest metallurgical enterprise in Azerbaijan. The company was opened in 2001 and is located in Baku, Narimanov. It is the first modern steel plant in the Caucasus, manufacturing products such as billets, pipes, and construction rebars from carbon and alloy steel. The plant also produces standard and shaped rolled products like channels, angles, I-beams, wire rods (steel wire), and shaped casts. Baku Steel Company uses state-of-the-art steelmaking and continuous casting technology in its production processes.

The company's steel production capacity has increased over the years with the addition of new equipment and technology. As of 2001, Baku Steel Company had two electric arc furnaces and three rolling lines, which enabled them to achieve an annual steel production capacity of 1,000,000 tons. This capacity has allowed the company to become an important economic force in Azerbaijan and a significant contributor to the country's metallurgy industry.

The Baku Steel Company's production capacity includes the ability to produce 400,000 tons of rebar annually. This contributes to the company's overall steel production capacity and helps meet the demand for steel products in Azerbaijan and beyond. The company exports its products to 20 countries or more, showcasing its ability to meet both domestic and international demand.

The Baku Steel Company's production capacity has also enabled it to diversify its product range. In addition to rebar, the company produces billets, pipes, and other rolled products. This diversification allows Baku Steel to cater to various industries, including construction, energy, tools and machinery, and transportation. The company's ability to produce a range of steel products further highlights its significant contribution to Azerbaijan's metallurgy sector.

Overall, Baku Steel Company's steel production capacity of 1,000,000 tons annually, achieved through its modern equipment and technology, has established the company as a key player in Azerbaijan's metallurgy industry. With its diverse product range and export capabilities, Baku Steel Company continues to play a crucial role in the country's economic development and steel production sector.

Azerbaijan's metallurgical industry

The metallurgical industry in Azerbaijan has experienced significant growth in recent years, with production reaching 887.4 million manat in the first eight months of 2023. The country's major metallurgical enterprises include the Sumgait Aluminium Plant, the Ganja Aluminium Plant, CJSC Global Construction, and the Baku Steel Company, which is the largest metallurgical enterprise in the country.

Baku, Sumgait, and Dashkesan are the major centres of metallurgy in Azerbaijan in terms of the extraction and processing of iron ore. The Sumgait Pipe-Rolling Plant produces pipes for the oil and gas industry, while the Baku Steel Company has an annual steel production capacity of 1,000,000 tons. In 2007, the annual production capacities of Baku Steel Company and Baku Steel Casting were 286,456 tons and 70,770 tons, respectively.

Non-ferrous metallurgy in Azerbaijan has developed due to the availability of aluminium, copper, molybdenum, cobalt, and mercury reserves, as well as electricity for the smelting process. The Zeylik mine in the Daskasan district provides alunite for aluminium production, with the extracted ore being transported to the aluminium plant in Ganja. The obtained aluminium oxide is then brought to the Sumgayit aluminium plant for aluminium production. The Ganja Aluminium Plant also produces sulfuric acid, aluminium oxide, and potassium fertiliser.

Azerbaijan's gold production has also been increasing. In 2017, the country produced 6,390.8 kg of gold, and in the first five months of 2018, gold production amounted to 2,081.7 kg. Anglo Asian Mining PLC is the main gold producer in Azerbaijan, extracting gold from the Gadir Ugur and Gosha deposits.

The country's iron ore reserves

Azerbaijan has a complex geological structure, and its landscape is rich in natural resources. The country's iron ore reserves are found in four classes: segregation-magmatic, skarn-magnetite (contact-metasomatic), hydrothermal-metasomatic, and sedimentation.

Of these four classes, only three are of commercial use as ore deposits: Dashkasan, South Dashkesen, and İron ore-bearing regions with skarn-magnetite. These deposits are composed of Kellovey, Oxford, and Kimeric-aged volcanogenic, pyroclastic, and sedimentary-volcanogenic rocks. The industry reserves of the Dashkasan iron ore group deposits are 250 million tons.

The Dashkasan deposits have played a crucial role in the mineral raw basis of the Republic for many years. The Azerbaijan ore-dressing group of enterprises operated based on these deposits, and its product (iron concentrate) entirely met the needs of Georgia's Rustavi metallurgy group of enterprises. If the Dashkasan ore-dressing group of enterprises resumes operations, it will have a reliable reserve for 70–80 years.

The Dashkasan iron ore deposits are located in the valley of Goshagarchay and play a key role in the development of ferrous metallurgy in the country. The cities of Baku, Sumgait, and Dashkesan are major centers of metallurgy in terms of iron ore extraction and processing. The Sumgait Pipe-Rolling Plant produces drill pipes, casings, tubing, and oil and gas pipes, among other products.

The metallurgical production of the Republic of Azerbaijan is considered high due to its large deposits of iron ore, among other metals. The country's metallurgy industry encompasses both ferrous and non-ferrous branches.

Steel exports

Azerbaijan's steel exports are closely tied to the country's metallurgical industry, which includes both ferrous and non-ferrous branches. Ferrous metallurgy involves the extraction of iron, smelting and refining of iron ore, and the production of ferroalloys. The cities of Baku, Sumgait, and Dashkesan are major centres for the extraction and processing of iron ore. The Baku Steel Company, established in 2001, is the largest metallurgical enterprise in Azerbaijan, with an annual steel production capacity of 1,000,000 tons.

The development of the steel industry in Azerbaijan is influenced by the country's large deposits of iron ore, alunite, polymetallic ores, and bentonite clay. Bentonite clay deposits in the village of Dash Salakhly, for example, are used in steel smelting. The metallurgical production in the country is considered high due to these abundant natural resources.

Azerbaijan's steel exports are part of a broader range of exports, including chemicals, machinery, food and beverages, petroleum and natural gas, iron and steel, and nonferrous metals. The country's primary trading partners include Russia, Turkey, China, and Italy, with additional trade links to Georgia, Belarus, Britain, Israel, and Central Asian republics.

While the country's exports are diverse, the economy of Azerbaijan has been heavily dependent on its oil and gas industry. The country has been a significant oil producer for over a century, and in 2005, oil extraction and refining accounted for more than 75% of the value of industrial production. However, there has been a recent focus on developing offshore resources in the Caspian Sea, and Azerbaijan is expected to become a significant gas exporter with the development of the Shah Deniz natural gas deposit.

The role of steel in Azerbaijan's economy

Azerbaijan's economy is highly dependent on its oil and gas exports, which account for two-thirds of its GDP. However, the country also has a metallurgy industry that encompasses both ferrous and non-ferrous branches.

Ferrous metallurgy in Azerbaijan includes the extraction of iron, smelting and refining of iron ore, and the production of ferroalloys. The country's large deposits of iron ore have contributed to its high metallurgical production. The cities of Baku, Sumgait, and Dashkesan are major centers of metallurgy, with the Sumgait Pipe-Rolling Plant producing oil and gas pipes. The Baku Steel Company, established in 2001, is the largest metallurgical enterprise in Azerbaijan, with an annual steel production capacity of 1,000,000 tons.

Non-ferrous metallurgy in Azerbaijan involves the production of aluminum, copper, and other metals. The development of this sector is facilitated by the availability of aluminum reserves and the necessary electricity for the smelting process. The Ganja Aluminum Plant and Sumgait Aluminum Plant are key players in this industry.

Azerbaijan's steel industry, while still on a small scale, has been developing. In 2005, the country was increasing its steel products production at the Baku Steel Company, and the total steelmaking capacity of BSC can reach up to 1.1 million tons. Azerbaijan's interest in the Iranian steel industry further underscores its commitment to the steel sector.

The country's steel production and exports contribute to its economy, although the extent of this contribution is not specified in the available sources. Steel is listed among Azerbaijan's exports, along with petroleum and natural gas, indicating its role in international trade.

In summary, while Azerbaijan's economy relies heavily on oil and gas, its steel industry is also noteworthy, particularly with the presence of major players like the Baku Steel Company and the development of both ferrous and non-ferrous metallurgy sectors.

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