Analytical Report: Iran's Steel Industry Lags Behind Neighboring Countries

According to research from the Open Data Iran database, Iran's steel industry, once recognized as one of the strongest in the region, has not made progress compared to neighboring countries. Despite increasing steel production over the past two decades, the country's steel industry has not kept pace with technological advancements employed in other regions. For instance, current statistics indicate that Iran's steel production capacity is 40% less than that of Turkey. The steel industry is the second largest in the world after oil and gas. The Open Data Iran database notes that despite significant economic corruption that has shaken Iran's steel industry in recent years, domestic steel production has been on the rise over the past twenty years. The report references a multi-billion dollar corruption case reported in the Mobarakeh Steel Company in 2022. The first chart from the Open Data Iran database shows the latest production rate, indicating an average production of 2.5 million tons of steel per month. The second chart shows that Iran's steel production capacity has steadily increased over the past 20 years; however, it remains 40% behind Turkey. According to the report, a key feature of the steel industry is its high energy demand, requiring an average of 6 to 8 megawatt-hours of energy to produce one ton of steel. The Open Data database states that 'Iranian steel mills are based on blast furnace technology, which requires coke (a pure form of coal), iron ore, and hot, pressurized air. This combination leads to severe air pollution.' The global focus in the steel industry is shifting towards green steel, produced using electric energy. Research from the Open Data Iran database indicates that in the coming years, buyers will lean towards purchasing green steel products, 'but it seems that Iran lacks the necessary infrastructure or investment to compete in this market.'