Industrial Resilience: Iran’s Steel Production Grows 6% Despite Dual Conflicts in 2025-26

Tehran - BORNA - According to ISPA statistics, Iran's annual steel output reached 32 million tons. While the industry faced significant energy hurdles, a focus on production management and the strengthening of self-supply energy infrastructures allowed the sector to maintain its growth trajectory.

Divergent Trends in the Supply Chain

While intermediate steel showed resilience, the overall chain displayed a mixed performance:

Sponge Iron (DRI): Surged by 16%, benefiting from new capacities.

Steel Slabs: Grew by 10.2%.

Steel Ingots (Billet & Bloom): Increased by 3.8%.

Finished Steel Products: Declined by 1.8%, primarily due to bottlenecks in downstream sectors.

The Impact of War on Production

he report notes that the production of iron ore pellets and concentrate remained stagnant compared to the previous year. This imbalance has created a shortage of raw materials for Direct Reduction (DR) units. However, this supply-demand gap was temporarily masked by the forced shutdown of over 14 million tons of sponge iron capacity due to the "Third Imposed War," which reduced immediate pressure on stockpiles.

The flat products sector faced the most complex challenges. Despite the growth in slab output, significant damage to key production facilities during the recent conflict has disrupted the balance of the chain. This has led to a sharp increase in the necessity to import slabs and hot-rolled coils to sustain downstream industries.

Strategic Export Opportunities

In the long-product sector, production saw a minor decline of 1.1%. Industry experts suggest that expanding the export of steel ingots—which maintained growth—remains a vital economic opportunity.

Activating idle capacities could quickly compensate for downstream deficits and bolster export revenues in the coming year.

The Iranian steel industry has demonstrated remarkable industrial resilience through 2025 and early 2026. By navigating energy crises and the physical impacts of war, the sector proved its ability to sustain growth. Nevertheless, repairing war-damaged infrastructure and reducing dependency on imported hot-rolled products remain the primary challenges for the immediate future.

End Article