Potential and challenges for steelmaking in Iran

There is a mismatch between Iran’s steelmaking capacity and the country’s steel demand at present, and a number of obstacles must be overcome before its steel industry can reach its true potential.

The international community’s interest in Iran – and in its steel sector in particular – has increased significantly since international trading sanctions were partially removed at the beginning of 2016. Many foreign steel producers, traders and equipment suppliers have rushed back to Iran to renew their ties, seeing great business potential in this market. Nevertheless, as much as it is promising, the Iranian market remains challenging. On the one hand, with liberalisation of trade relations and the inflow of investments into different sectors of the country’s economy, its domestic market is expected to see significant growth in steel consumption. Meanwhile, investments in steel production itself will spur the country’s export potential. Moreover, Iran has abundant raw materials and energy resources with which to feed its growing steelmaking industry. The recovery of the economy is still hampered by remaining banking issues, which mean that the realisation of steelmaking and steel-consuming projects may...

Published

Vlada Novokreshchenova

December 08, 2016

15:40 GMT

Dnepr