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Growth of Iran's steel sector discussed at Global Steel Summit

The growth targets and international investment strategies of the Iranian Steel Sector were discussed.

Growth of Iran's steel sector discussed at Global Steel Summit

The dynamics of the Persian steel market and the future prospects in the sector were discussed in the Iran panel at the 2nd Global Steel Summit held in Dubai. Alireza Mansouri, Export Manager of Mobarakeh Steel, started his speech by emphasizing the significant growth in Iran's steel sector in recent years. Mansouri stated that Iran's annual steel production has increased from 1.8 million tons in 1979 to 31 million tons by 2023, making Iran the 10th largest steel producer in the world. This growth is seen as a major step towards making Iran the world's second largest steel producer after India.

In addition, while mentioning the performance of Iran's steel exports, Mansouri said that 11.9 million tons of steel were exported in 2023, of which 23% was crude steel, 65% was raw materials, 10% was long steel and 2% was flat steel.

Amir Keshmiri, CEO of Central Iron Ore Development, announced Iran's expansion plans in the steel sector. Keshmiri, stated that Iran aims to increase its current steel production capacity of 45 million tons to 66 million tons by 2032. Achieving this target will require an additional investment of $28.9 billion.

Iranian steel companies will be able to cover $12.9 billion of these investments, but a $15.9 billion shortfall remains. Foreign investors are expected to meet $2 billion of the investment needs. Keshmiri emphasized that Iran has the necessary knowledge, expertise and infrastructure, local companies are actively investing and therefore present a great opportunity for foreign investors.

During the panel discussion, Keshmiri said that the new President of the Islamic Republic of Iran, Dr. Pezeshkian, announced 2 weeks ago that $100 billion of the $200 billion investment required for the country's 8% economic growth target is planned to be provided from domestic sources and the remaining $100 billion from foreign investors.

Keshmiri said that Iran's steel industry has a great potential for growth and that investing in this sector means not to miss the rare opportunities in this sector.

Mobarakeh Steel, Khouzestan Steel and Esfahan Steel are the main players in Iran's steel sector. Mobarakeh Steel is the largest producer with an annual output of 10.36 million tons, while Khouzestan Steel has a production capacity of 3.8 million tons and Esfahan Steel 3.6 million tons.

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