Steel is a global commodity, and one cannot discuss the strategy of Iran’s steel industry without considering the conditions of the world market.

Today, steel is facing a global surplus and reduced demand, which has resulted in an unprecedented drop in global steel prices.

World steel capacity reached 2.4 billion tons in 2015, but the demand for crude steel decreased, with approximately 1.6 billion tons being produced in 2015 and a similar amount in 2016, which itself was a surplus over demand.

Meanwhile, it is predicted that global steel production capacity will increase to 2.3 billion tons by 2018. In short, reduced demand, surplus supply, and increasing capacity are serious challenges for steel producers worldwide. Iran is one of the countries that, despite the global production capacity surplus, is seeking to increase its domestic steel production.

In recent years, Iran has produced about 47 million tons of steel and plans to raise its crude steel production to 55 million tons by the year 1404 (2025). According to the 1404 vision plan, Iran’s steel production should reach 55 million tons, of which about 25 to 30 million tons will be consumed domestically and 20 to 25 million tons will be exported.