Steel production declines on energy and war disruption

Iran's steel production declined by 10.6pct YoY in the first six months of the Iranian year, from March 21 to September 22, mainly due to energy shortages and the impact of the war, according to the Iranian Steel Producers Association.

Semi-finished steel production also declined by 10.6pct, although output exceeded 13 mln tons during the period. The production decline had reached 25pct at the beginning of the year but gradually eased as damaged production facilities were rebuilt.

The impact was particularly severe in the flat steel segment, with flat steel production declining by 25pct and slab output falling by 37.5pct, even excluding the effects of the war.

Overall steel product production fell by 7.4pct to 9.903 mln tons during the six-month period.

The industry's export value declined to USD 6.5 bln, its lowest level since 2016, according to Vahid Yaghoubi, executive deputy head of the Iranian Steel Producers Association.

Yaghoubi also pointed to rising energy costs, saying natural gas prices have increased sharply over the past seven years, adding further pressure on Iranian steelmakers.