General metal industry news
From ferrous to non-ferrous, all the international news from the metallurgical industry
Iran ousted from list of world’s top 10 steel producers
This time, sanctions have nothing to do with it - at least not directly.
While Iran ranked 9th in the list of the largest steel-producing countries last February, the country was missing from the March World Steel Association list of the top 10 largest steel producers, with Turkey and Italy taking its place.
What is the reason for this?
Iranian steel production has fallen following a severe shortage of the electricity and gas required to operate steel plants. The country has faced unprecedented energy consumption due to a sharp drop in temperatures, which has resulted in a curtailment of gas supply to industries to meet the growing needs of households.
Despite having the largest natural gas reserves in the world after Russia, Iran has grave inborn technical problems with gas production and ailing infrastructure. The country suffers from overconsumption of natural gas and other energy sources as a result of poor energy efficiency and struggles with high energy consumption in almost all industrial sectors.
Steel production has started to play an important role in Iran’s economy in recent years. According to the World Steel Association's data, Iran is estimated to have produced 2.4 Mt in February 2023, up 14.6% on February 2022.