Steel production drops 67 in 11 months

Steel production drops 6.7% in 11 months

TEHRAN– Iran’s steel production declined by 6.7 percent in the first 11 months of the current Iranian calendar year (March 2024–February 2025), the Iranian Steel Producers Association (ISPA) reported.

According to ISPA data, the country’s steel output had already fallen 4.8 percent in the first nine months due to electricity and gas restrictions, with the decline worsening to 5.5 percent in the 10-month statistics and further to 6.7 percent in the 11-month report.

Energy shortages have also cut Iran’s semi-finished steel production by around 2 million tons, valued at approximately $1.0 billion. Notably, 75 percent of this decline was in billet and slab production, highlighting the greater impact of electricity and gas constraints on small and medium-sized private-sector mills.

Meanwhile, severe gas restrictions have offset new sponge iron capacity additions. While iron ore concentrate output has increased, pellet production has declined.

Following billet and slab, rebar has recorded the second-highest production drop in the steel supply chain, primarily due to a deep domestic market recession and lower exports.

EF/

source: tehrantimes.com