Iran’s steel industry recorded a mixed performance [1] in the first month of 2025, with steel product output declining while crude steel production saw an increase, according to the latest data from the World Steel Association (WSA).
Steel product output stood at 1.812 million tons, reflecting a 1.2% year-on-year decline compared to 1.851 million tons in the same period last year. The dip comes amid shifting market dynamics and evolving trade policies affecting steel demand.
Meanwhile, Iran’s crude steel production reached 3.3 million tons in March, marking a 3.7% increase compared to the same month in 2024. The rise aligns with a broader global uptick in steel output during the third month of 2025, as major producers adjusted to improving economic conditions and infrastructure investments.
Iran remains a significant player in the global steel market, ranking seventh among the world’s largest crude steel producers. The country’s steel sector has been navigating challenges related to energy supply constraints, which have impacted production efficiency in recent months.
Additionally, Iran’s steel industry is witnessing strategic developments, including a $5 billion investment in Afghanistan’s iron ore sector, aimed at securing raw material supplies and strengthening regional trade. The move is expected to enhance Iran’s steel production capacity and improve its competitive position in Asia.
In a separate development, Khuzestan Steel Company has pioneered an innovative method to produce iron from industrial sludge, reducing production costs and environmental impact. The breakthrough underscores Iran’s efforts to optimize steel manufacturing processes amid global sustainability concerns.
As the steel sector adapts to evolving market conditions, industry analysts anticipate further shifts in production trends, with Iran’s steelmakers focusing on efficiency improvements and strategic investments to maintain their global standing.
Sources:
[1] Over 1.8m tons of steel products produced in a month https://www.tehrantimes.com/news/513001/Over-1-8m-tons-of-steel-products-produced-in-a-month