TEHRAN- According to the statistics of the Iranian Steel Producers Association (ISPA), iron ore concentrate production in Iran during the past Iranian calendar year 1404 (ended on March 20) increased by 1.1 percent.

The country’s iron ore concentrate output stood at 73.797 million tons in the past year, while the figure was 73.017 million tons in year 1403, the association announced.

Iron ore concentrate is a high-grade product derived from raw iron ore through a series of processing steps. While raw iron ore can contain as little as 20-30 percent iron mixed with waste rock and other minerals, the concentrate is upgraded to a much higher purity, typically containing over 60 percent iron.

The goal of creating concentrate is to increase the ore's iron content and remove impurities. This makes it far more efficient for transport and for use in steelmaking. Shipping concentrate instead of raw ore reduces costs because less useless material is being moved. Furthermore, modern steel furnaces require this high-grade, consistent input to operate effectively.

The process of creating iron ore concentrate, often called "beneficiation," involves several key stages: Crushing and Grinding: The raw ore is first crushed and then ground into a fine powder.

Separation: The iron particles are separated from the waste rock (gangue). This is most commonly done using magnetic separation, as iron is magnetic. Other methods include flotation or gravity separation, depending on the ore type. Concentrating: The result is a fine, powdery substance with a high iron concentration. This is the final product: iron ore concentrate.

Iron ore concentrate is not typically used directly in a blast furnace. Instead, it is a key intermediary product. It is usually shipped to a pelletizing plant, where it is rolled into small balls (pellets) and hardened. These iron ore pellets are then fed into direct reduction furnaces or blast furnaces to produce steel.

It is worth mentioning that according to the statistics of the Iranian Steel Producers Association, steel production in Iran during the past Iranian calendar year 1404 has recorded a growth of over six percent.

The association has published the statistics for the year 1404 of the country's steel chain. Accordingly, despite intensified energy restrictions, due to optimal management and the introduction of new capacities—both in production and in energy self-sufficiency by steelmakers—Iran's steel production increased by 6.2 percent. Thus, Iran's steel production in 1404 reached 32.1 million tons, equaling the production level of 1402.

The total production volume of steel products in the country in 1404, however, experienced a reverse trend, declining by 1.8 percent. Meanwhile, sponge iron recorded the highest production growth among steel chain products, with a 16-percent increase. However, in the upstream of the steel chain, production of pellets and iron ore concentrate remained at the same levels as the previous year.

According to this report, the significant growth in sponge iron production—due to new capacities coming online on one hand—and the stabilization of pellet and iron ore concentrate production on the other hand, indicates a worsening shortage of raw materials for direct reduction units. However, with the shutdown of more than 14 million tons of sponge iron production capacity due to damages caused by the third imposed war, this shortage will be temporarily absent.

A 3.8-percent increase in steel ingot production against a 1.1-percent decrease in long steel product production indicates the need to develop steel ingot exports. It is noteworthy that the shutdown of more than two million tons of steel ingot capacity due to the third imposed war can be compensated by activating idle capacities for producing this product.

Production of various steel sheets in 1404 remained almost at the level of the previous year. Meanwhile, slab production saw a double-digit growth of 10.2 percent. Unfortunately, due to the damages inflicted on slab-producing companies during the imposed war, the balance of the flat steel products chain has been disrupted, making the import of slabs and hot-rolled sheets necessary and urgent.

Iran's steel industry is a cornerstone of its non-oil economy, having grown into a significant global player. In 2025, the country produced approximately 32 million tons of crude steel, securing its position as the world's 10th-largest producer.

Beyond crude steel, Iran is a major force in the global direct reduced iron (DRI) market. The nation produced roughly 37 million tons of DRI in 2025, accounting for about a quarter of the world's total supply. This DRI is used by its modern electric arc furnace (EAF) mills, which form the backbone of its steelmaking capacity. However, the industry has faced severe headwinds. In early 2026, military strikes on key facilities, including the country's two largest steel plants, caused major disruptions. This came on top of long-standing challenges like international sanctions, domestic inflation, and energy shortages from power and gas cuts.

Despite these obstacles, the sector remains a vital export earner. It exports a significant portion of its output, with semi-finished steel products being a primary driver. While its immediate outlook is clouded by conflict, Iran's steel industry is a testament to resilience and strategic industrial development on the global stage.

Iran's steel industry produces a comprehensive range of products, from semi-finished materials to value-added goods, supporting construction, automotive, infrastructure, and manufacturing. The sector can be broken down into several key categories:

Semi-Finished Steel

The industry's backbone consists of products like billet, bloom, and slab, with Iran producing over 20 million tons of these in an eight-month period alone.

Flat Steel Products

Led by Mobarakeh Steel Company (MSC), the largest steel producer in the West Asia and North Africa, Iran's flat steel output includes hot-rolled and cold-rolled coils, as well as coated products such as galvanized and pre-painted sheets. These high-quality sheets are used in major national projects, including large-scale water pipelines.

Long Steel Products

Specialized in by companies like Esfahan Steel Company (ESCO), this segment includes:

* Rebar (reinforcement bars) for construction

* Structural sections like I-beams, H-profiles, channels, and angles

* Railway rails – ESCO is Iran's sole producer of rail tracks

Tubular and Finished Steel Products

These include various welded pipes, galvanized tubes for water and gas, and advanced automotive steel grades like CK45 and S650MC high-strength sheets, which have recently been produced locally to reduce import dependence.

Overall, the diversity of products demonstrates Iran's growing self-sufficiency and its role as a significant global steel producer.

According to the data released by the World Steel Association (WSA), Iran’s crude steel production rose 15.1 percent year-on-year to 2.6 million tons in January 2026.

The figures show Iran maintained its position as the world’s tenth-largest steel producer, outperforming the broader global trend.

Global crude steel production across 69 countries totaled 147.3 million tons in January, down 6.5 percent compared with January 2025.

China, the world’s largest steel producer, recorded a 13.9 percent decline in output to 75.3 million tons. India produced 15.1 million tons, up 10.5 percent year-on-year, while the United States posted a 3.3 percent increase to 7.1 million tons.

South Korea’s output rose 5.0 percent to 5.6 million tons. Japan produced 6.8 million tons, down 0.5 percent, and Brazil’s production fell 1.4 percent to 2.7 million tons.

Germany registered a 15 percent increase to 3.1 million tons, while Russia’s output declined 7.4 percent to 5.5 million tons. Turkey produced 3.4 million tons, up 5.8 percent year-on-year.

The data indicate that while global steel production contracted at the start of 2026, Iran expanded output at a double-digit pace, consolidating its ranking among leading producers.

According to World Steel Association’s previous report, Iran's steel production reached three million tons in December 2025, registering more than 16 percent growth compared to the same period last year.

The country remained in tenth place globally with a total steel production of approximately 32 million tons in 2025.

MA