Iran's Steel Industry Grows Amid Sanctions and Energy Challenges, Exports Fall Sharply

TEHRAN, Iran - Aug. 18, 2025 - PRLog -- Iran's steel industry, a vital pillar of its industrial economy, recorded significant growth in production and domestic consumption in the first four months of 2025, yet faced a nearly 21% drop in export volumes.

According to the Iranian Steel Producers Association, total steel output rose 5.1% to 26.4 million tons compared to the same period last year. Long products such as beams (up 5.4%) and rebar (up 3%) reflected resilience in local markets. Domestic steel consumption also rose by 8.3%, signaling renewed activity in construction and downstream industries.

However, slab production fell 3.6% while cold-rolled steel remained flat, pointing to raw material constraints and structural shifts in production patterns.

Exports, in contrast, plunged by 20.9% to 9.8 million tons. The decline is attributed to sanctions restricting global market access, heightened geopolitical tensions and war risks between Iran and the U.S., weaker global demand, and internal export restrictions. Although the dollar value of some steel exports increased due to higher global prices and exchange rate effects, it was not enough to offset the sharp volume drop.

One of the most pressing challenges for Iran's steelmakers is energy imbalance, particularly electricity shortages that disrupt stable production and increase costs. Industry experts emphasize the need for infrastructure investment, energy-efficiency technologies, and structural reforms in energy supply to maintain competitiveness.

Looking ahead, Iran's steel sector requires strategic, multi-dimensional policies—expanding technology and energy efficiency, boosting downstream industries, diversifying export markets (especially in Asia and Africa), and improving risk management amid ongoing geopolitical tensions.

For more details, read the full report on Titrsanat News Agency (https://titrsanat.ir/?p=15611)