Shahdab needed to avoid conceding more than a set to finish as the Pool B runner-up and book a last-four date with Foolad Sirjan. However, an all-Iranian semifinal was scrapped when Ciudad took the first two sets and went on to win 3-1 (25-23, 25-23, 17-25, 25-18) at Sabiazinho Arena.
The result helped the host’s Sada Cruzeiro, which had defeated Italian pool winner Trentino Itas in five sets on the preceding night, go through despite a 3-1 loss to Shahdab earlier in the competition.
Opposite Jonas Ponzio contributed with a game-high 21 points (18 kills and three blocks) for Ciudad, with middle-blocker Gustavo Maciel and outside-hitter Mauro Zelayeta adding 10 apiece.
Veteran opposite Amir Ghafour chipped in 18 points, including 14 attacks, for Shahdab, while Pakistani outside-hitter Usman Faryad Ali finished on 14 points.
Shahdab got off to losing start in Uberlândia, suffering a straight-set defeat against Trentino Itas, before bouncing back to beat Sada Cruzeiro.
Three-time semifinalist Paykan is the most successful Iranian club in the last 18 editions of the flagship international club competition, having won a bronze medal in 2010.