TEHRAN (Iran News) Farzaneh Piri, the association highlighted that the intensified drop in steel production stems from energy shortages, particularly restrictions on electricity and gas supplies. The rate of decline has worsened over the year, rising from 4.8% in the first nine months to 5.5% in ten months, and now reaching 6.7% over 11 months.

Energy limitations have slashed Iran’s intermediate steel production by approximately 2 million tons, valued at around $1 billion. Of this reduction, 75% pertains to steel billet output, reflecting the disproportionate impact of power and gas constraints on small and medium-sized private sector units.

Severe gas shortages have also hampered the output of newly operational sponge iron capacities, further contributing to the decline. While iron ore concentrate production has seen an uptick, pellet production has recorded a decrease.

Following steel billets, rebar has experienced the second-highest rate of production decline in the steel supply chain, largely due to a sharp domestic market recession and reduced exports.

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TEHRAN (Iran News) The World Steel Association’s report, which analyzes global crude steel production for January 2025 and compares it to January 2024, reveals that worldwide steel output reached 151.4 million tons in January 2025, marking a 4.4% decrease from the same period last year. Compiled based on data from 69 steel-producing countries, the report highlights a global downturn in steel production, with the exception of the “Russia and other CIS + Ukraine” region, which saw a modest increase of 1.4%. All other regions experienced declines, with the Middle East recording the steepest drop at 15.3%.

Regional Steel Production Breakdown (January 2025): Africa: 1.9 million tons, -3.5%; Asia and Oceania: 112.3 million tons, -4.5%; European Union (27 countries): 10.3 million tons, -3.3%; Other Europe: 3.5 million tons, -6.8%; Middle East: 4.2 million tons, -15.3%; North America: 9.0 million tons, -0.5%;     Russia and other CIS + Ukraine: 7.0 million tons, +1.4%; and South America: 3.2 million tons, -9.8%.

The January 2025 report underscores the challenges confronting the global steel industry, with production declines in most major steel-producing regions and countries signaling the presence of inhibiting factors. Asia and Oceania remain the largest steel-producing region, with China accounting for a significant share of this output. The report attributes the global reduction to factors such as declining demand, supply chain disruptions, economic and political shifts, and environmental restrictions. Notably, while most countries saw declines, India and the United States reported increases in production.

Iran’s crude steel production of 2.2 million tons in January 2025 reflects the country’s steepest drop among the top 10 steel producers, contributing significantly to the Middle East’s overall 15.3% reduction. The report identifies energy imbalances as a primary reason for Iran’s 24.1% decline, highlighting the urgent need for solutions to address this issue. This percentage marks the largest drop among the world’s leading steel-producing nations.

Despite the downturn, Iran retains its position as the tenth-largest steel producer globally, underscoring its continued relevance in the industry. However, the sharp decline serves as a wake-up call for the country to tackle energy-related challenges swiftly to stabilize and sustain its steel sector.

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