Deputy minister: Steel production capacity tops 55m tons
Iran’s annual steel production capacity has reached 55 million metric tons and could rise to 60 million tons within two years if infrastructure constraints are addressed and new technologies are adopted, a deputy industry minister said.
Vajihollah Jafari made the remarks on Thursday at the opening of the 23rd Tabriz Metafou International Exhibition, IRNA reported.
“Capacity is expected to reach 60 million tons within the next two years, but to increase utilization of existing capacity and compete in global markets, infrastructure constraints must be addressed and new technologies adopted,” he said.
Jafari cited shortages of energy and natural gas, along with maintenance issues at some facilities, as factors limiting capacity utilization.
“Alongside maximizing the use of existing capacity, we must also plan to strengthen the competitiveness of the country’s steel industry in the future,” he said.
He said the global steel industry was moving toward reducing waste, achieving zero waste and producing green steel. Without the ability to compete in these areas, domestic production capacity alone would not meet development needs, while opportunities to compete effectively with global producers and expand exports would remain limited.
Jafari said adopting new technologies and expanding industrial cooperation were essential to improving competitiveness. Exhibitions such as Tabriz Metafou could help the industry gain exposure to new technologies and advance its development, he added.
The country, long among the world’s top 10 crude steel producers, dropped out of the ranking in June, with Vietnam entering the list in 10th place after increasing its June output by 27.5% year over year to 2.6 million metric tons, according to the World Steel Association.
Iran’s two largest steelmakers, Mobarakeh Steel Company and Khuzestan Steel Company, sustained damage during the 40-day US-Israeli war that began in late February.
The conflict has disrupted steel production and exports through damage to industrial facilities, logistical constraints and energy shortages. Iran’s aviation sector has also faced new US sanctions, while maritime trade from the south has been subject to a US naval blockade.
Bahram Sobhani, head of the Iranian Steel Producers Association, recently told IRIB that Iran’s steel production was expected to reach 26 million to 27 million metric tons by the end of the current Iranian year on March 20, 2027, below an earlier forecast of 30 million tons. He cited the naval blockade, war-related damage and transportation restrictions as factors disrupting production and exports.