The production and consumption of steel products can be considered as a key component in the economic development and, in particular, the infrastructural development of a country. The public perception of this industry is not limited to its profitability and return on investment; the steel industry is regarded as a strategic and pivotal sector. The growth rate of crude steel production over the past two decades indicates a significant boom in this industry in recent years. This growth is so substantial that the approximate value of steel product transactions in 2015 amounted to over 1300 billion rials.

However, in recent years, the economic slowdown of the Asian Dragon (China) along with the global economic crisis has led to a global steel market with an excess supply of over 150 million tons in 2015, according to available statistics. This high volume of excess supply, coupled with China’s unwillingness to significantly reduce its production and the slow pace of the global economy’s recovery from recession, has caused a dramatic drop in global prices. Naturally, this has created many difficulties for producers in this industry.

The global economic recession and the surplus of demand in international markets have also brought new challenges regarding exports for Iran’s steel industry. In addition to all the mentioned problems, the issue of sanctions must also be considered, which has had undeniable effects not only on sales and revenue but also on increasing the final cost of production, including consumables and raw materials.

While the steel industry globally, and under similar and even more difficult conditions in Iran, is going through a crisis, this does not necessarily mean that a favorable future cannot be envisioned for it. Based on the forecasts made, the future of Iran’s steel industry will not be dim. In addition to the effects of lifting sanctions and the resulting cost reductions, investment in construction projects and the consequent increase in demand in the coming years is not unexpected.