Iran’s steel industry keeping flourishing trend
By Reza Abesh Ahmadlou
Staff writer
Iran’s steel industry stands at the forefront of the nation’s industrial advancement, playing a pivotal role in economic development and global trade. The industry has steadily grown despite various challenges, leveraging technological innovations, strategic export initiatives, and a wealth of natural resources to establish a strong global presence. Iran's annual steel production capacity is targeted to hit 55 million tons by 2025.
Ninth producer of crude steel
According to the World Steel Association (WSA), Iranian steelmakers churned out 2.6 million tons of crude steel in January, which led the country to stand at ninth place of global steel producers.
World crude steel production for the 71 countries reporting to the World Steel Association was 148.1 million tons in January 2024.
Iran was the tenth-biggest steelmaker in the world in 2033 as the country produced 31.1 million tons of crude steel during past year.
Green production
The industry’s commitment to adopting environmentally sustainable production practices has been a significant driver of technological innovation in Iran.
Iranian steelmakers have embraced eco-friendly initiatives, such as the use of renewable energy sources and the implementation of energy-efficient technologies, to align with global sustainability trends and reduce their environmental footprint.
Sponge iron production
The extensive and innovative use of direct-reduction iron (DRI) technology in Iran’s steel industry has been a game-changer for sponge iron production. By reducing reliance on imported raw materials and enabling cost-effective steel production, this technology has enhanced the industry’s self-sufficiency while promoting economic viability and competitiveness in the global market.
Self-sufficiency in CK45 steel production
Saba Steel Complex, a subsidiary of Mobarakeh Steel Company (MSC) in October 2023, inaugurated a production line of CK45 steel that made Iran needless of importing the product.
CK45 steel is classified as medium carbon steel, which is one of the most widely used non-alloy carbon steels. It has good tensile properties and machinability. So, the product is widely used in the field of machinery manufacturing.
In the past two years, one of the main strategies of MSC has been the production of new products with greater added value.
The new hot-rolled product of CK45 steel, which has many applications in the agricultural industry as well as making industrial tools, was manufactured by Saba Steel Complex after months of effort and relying on technology and skill.
High-strength steel
Notably, Iran’s production of high-strength steel (HSS) has gained significant attention, particularly in industries such as automotive, construction, and machinery manufacturing. The demand for lightweight yet high-strength materials has been a driving force behind the development of advanced high-strength steel (AHSS) and ultra-high-strength steel (UHSS) grades in Iran.
These specialized steel products offer improved performance characteristics, including enhanced structural integrity, weight reduction, and increased durability, making them well-suited for applications requiring superior mechanical properties.
Utilization of EAF
One notable advancement in steelmaking technology in Iran is the utilization of electric arc furnaces (EAF) and continuous casting machines, which have significantly increased the industry’s capacity for producing high-quality steel in various forms.
These modern processes not only enhance productivity but also enable the industry to meet stringent international standards and specifications, boosting its competitiveness in the global market.
High-performance steel alloys
In the energy sector, Iranian steel companies have introduced advanced alloys and specialty steels tailored to meet the stringent performance requirements of critical components, such as aircraft structures, turbine blades, and drilling equipment.
These high-performance alloys exhibit exceptional mechanical properties, temperature resistance, and fatigue strength, contributing to the efficiency and reliability of aerospace and energy systems.
Robust production chain
The steel industry’s progression in Iran is also closely intertwined with the efficient management of iron ore supply, production processes, and the establishment of a robust and integrated production chain.
The country’s iron ore reserves have facilitated the development of a comprehensive production chain, encompassing iron ore extraction, beneficiation, pelletizing, and the production of direct-reduced iron (DRI) and steel.
This integrated approach has empowered Iranian steelmakers to minimize dependency on external sources and ensure a seamless flow of raw materials throughout the production process, fostering cost-efficiency, reliability, and self-sufficiency.
Challenges facing Iran’s steel industry
The steel industry in Iran faces some challenges, including fluctuations in global steel prices, disruptive international sanctions, and reliance on some of imported raw materials, especially iron ore and coking coal.
Facilitate exports
Furthermore, the Iranian government has been actively fostering diplomatic and trade relations with other countries to facilitate the export of steel products. Bilateral trade agreements and diplomatic initiatives have paved the way for expanded market access, creating opportunities for Iranian steelmakers to solidify their presence in international trade networks.
Export destinations
Iran’s steel industry has set ambitious targets for production and exports, aiming to expand its global reach and increase its share of the international steel market. The industry targets key export destinations in the Middle East, Asia, and Europe, where Iranian steel products are in high demand. T
he government’s initiatives and strategic trade agreements have paved the way for expanded market access, creating opportunities for Iranian steelmakers to solidify their presence in international trade networks.
Main steelmakers of Iran
Iran is home to several major steelmakers that have played a pivotal role in the industry’s progression. Notable among them is Mobarakeh Steel Company (MSC) in central province of Isfahan, the largest steelmaker in the Middle East and North Africa, which has introduced groundbreaking products such as ultra-high strength steel for advanced engineering applications. Additionally, Esfahan Steel Company (ESCO) has developed corrosion-resistant steel grades, catering to the automotive and construction sectors, while Khouzestan Steel Company (KSC) in southwestern province of Khuzestan has launched innovative advanced high-strength steel for the aerospace and energy industries.
Iranian production technologies
Iran has been an innovator in steel production technologies, particularly with the widespread adoption of the PERED technology.
PERED or Persian Reduction has been invented and patented by Mines and Metals Engineering, an Iranian engineering company registered in Germany.
The technology involves a direct reduction process converting iron oxides, in the form of pellets or lump ore, to highly reduced product suitable for steel making.
Iran’s domestic iron ore supply has bolstered its production chain, supporting the industry’s self-sufficiency and capacity to meet both domestic and international demands.
Long-term goals
The future outlook for Iran’s steel industry is promising, with opportunities for significant expansion and global influence. The industry’s alignment with sustainable development goals, focus on product diversification, and strategic market expansion position it as a key player in the ongoing evolution of the global steel sector. Moreover, the industry’s commitment to research and development has fostered a culture of continuous innovation, driving advancements in steel technology, product diversification, and value-added solutions.