Irans annual steel output reaches 302m tons despite energy constraints
Iran’s annual steel output reaches 30.2m tons despite energy constraints
TEHRAN – Iran produced 30.2 million tons of steel in the Iranian year 1403 (ended on March 20), according to data released by the Iranian Steel Producers Association (ISPA).
The report highlights that approximately 2.0 million tons of semi-finished steel output—worth an estimated $1.0 billion—were lost due to electricity and natural gas shortages.
Following two years of growth after 2021, Iran’s steel production declined, returning to levels seen in 2020. The report notes that severe natural gas constraints have rendered the country’s new sponge iron capacities ineffective.
Despite these challenges, the highest production growth rates within the steel value chain were recorded in iron ore concentrate and hot-rolled coil segments.
Iran’s steel industry has demonstrated resilience amid external pressures, including international sanctions and the global pandemic. The country’s steel production capacity has reached 55 million tons, positioning Iran as the 10th largest steel producer globally. Projections indicate that Iran could ascend to the 7th position by the end of 2025, reflecting its strategic focus on expanding production and enhancing efficiency.
In addition to bolstering domestic production, Iran has significantly increased its steel exports. In the first 11 months of the Iranian calendar year 1403, the country exported approximately 27 million tons of steel products, generating $7.0 billion in revenue. This export growth underscores Iran's efforts to strengthen its presence in international markets and leverage its steel industry as a key economic driver.
Looking ahead, the Ministry of Industry, Mining, and Trade has outlined plans to enhance the steel industry's efficiency by completing and balancing the downstream value chain. This initiative aims to increase value-added production and ensure sustainable growth within the sector.
EF/MA
source: tehrantimes.com