Around 10 million tonnes of Iran’s annual steel production capacity, or 25% to 30% of its total output, was knocked offline following damage to key facilities, the newspaper Etemad had reported on Sunday.
Major producers, such as Mobarakeh Steel Company and Khuzestan Steel Company, were hit during the war. The resulting disruption to production has sent shockwaves through industries including construction, automotive and infrastructure, according Etemad.
A member of the Iran Chamber of Commerce’s board of representatives said the steel sheet market is expected to stabilise within two months as imports offset shortages and curb speculative demand, according to Iranian news agency Tabnak.
In early April, a deputy director of Khuzestan Steel Company said it would take between 6-12 months to restore operations after its facilities were damaged.
Steel is one of Iran’s main non-oil export earners, and the loss of production and export capacity could weigh on the trade balance and foreign currency revenues, while also risking the loss of market share in global steel, Etemad added.
The damage is expected to have broader economic consequences, with potential job losses and upward pressure on inflation.
