Iran’s steel industry is experiencing a significant downturn, with export values dropping by $600 million and marking a 14% decrease over the past seven months, according to recent data. This setback highlights the challenges facing the country’s steel sector, particularly as it struggles with fluctuating global demand, international sanctions, and internal economic pressures.
Iran's total steel export volume declined from 16.601 thousand tons in 2023 (April-October) to 16.519 thousand tons in 2024 (April-October) , marking a 0.5% drop. Correspondingly, the export value fell from USD 4.2500 million to USD 3.643 million, a 14% reduction.
Despite the overall downturn, long products exports saw a 29% increase in volume, rising from 1.584 thousand tons to 2.039 thousand tons, with the value holding steady at USD 974 million.
Flat Steel decreased by 23% in volume to 208 thousand tons, and by 22% in value to USD137 million.
Semi-finished products decreased by 23% and 22% in both volume and value, respectively, reaching 208 thousand tons and USD 137 million .
Sponge iron reported a 17% decrease in volume to 834 thousand tons, and an 22% decline in value to USD 199 million.
Concentrated iron ore remained relatively stable with a slight 0.5% decrease in volume to 4.022 thousand tons, but a 18% decrease in value to USD 292 million.
The decline in export values underscores the impact of global market volatility and domestic production challenges. As Iran navigates these economic pressures, the steel industry must adopt innovative strategies to enhance productivity, explore new markets, and improve supply chain efficiencies to stabilize and potentially grow export performance.
Looking ahead, the Iranian steel industry needs to focus on diversification and innovation to overcome current challenges. Strengthening trade relationships, investing in technology, and enhancing regulatory frameworks could play pivotal roles in revitalizing the sector. As global economic conditions remain uncertain, agility and strategic foresight will be essential for Iran's steel exporters to maintain their competitive edge.
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