Iran’s steel production has faced a 6.7pct decline in the first 11 months of the current Iranian calendar year (March 2024-February 2025), according to the Iranian Steel Producers Association (ISPA). The downturn has worsened progressively, from 4.8pct in the first nine months to 5.5pct after ten months, before reaching the latest figure.
A key factor behind this decline is ongoing electricity and gas shortages, which have significantly impacted semi-finished steel production. The sector has lost approximately 2 mln tons of output, translating to an estimated USD 1 bln in value. The private sector, particularly small and medium-sized mills, has been hit hardest, with 75pct of the production drop concentrated in billet and slab output.
Despite increased iron ore concentrate output, pellet production has suffered, as gas shortages have restricted new sponge iron capacity expansions. Additionally, rebar production has seen the second-largest decline in the supply chain, driven by a sluggish domestic market and falling exports.