Iran's steel industry stands at 43rd place in world
Iran's steel industry has reached 43rd place globally, with Mobarakeh Steel improving its ranking despite geopolitical challenges.
Intelligence analysis by Llama 3.3 70B
Iran's steel industry has achieved a significant milestone, rising to 43rd place globally, driven by Mobarakeh Steel's resilience and technological advantage.
Iran's steel industry is like a strong athlete that keeps running despite obstacles. It has improved its global ranking and is now 43rd, thanks to a company called Mobarakeh Steel, which is good at managing problems and making steel in a way that's better for the environment.
Analysis
Iran's Steel Industry Resilience
Iran's steel industry has demonstrated remarkable resilience in the face of geopolitical challenges and global economic downturns. The World Steel Association's 2026 report highlights Mobarakeh Steel's achievement in improving its global ranking from 44th to 43rd, despite the global steel industry experiencing a 2 percent decline in production in 2025.
The company's success can be attributed to its ability to manage crises and sustain its supply chain under difficult operating conditions. This is evident in its production of 10.29 million tons of steel, contributing to Iran's 1.9 percent growth in steel production, which consolidated its position among the world's top 10 producers.
Technological Advantage
Mobarakeh Steel's technological advantage is a key factor in its success. The company's direct reduced iron (DRI) production has enabled it to achieve first place in the world, with 37.2 million tons of DRI output in 2025. This leadership is not only quantitative but also qualitative, as it positions Mobarakeh Steel for a strong future in the green steel market.
The company's use of the electric arc furnace (EAF) route, which accounts for 91.9 percent of its production, is significantly more environmentally friendly than the traditional blast furnace method. This reduces carbon emission intensity, making Mobarakeh Steel well-positioned to face future stringent carbon regulations.
Global Market Presence
Mobarakeh Steel's rise in the global ranking has been accompanied by a strong presence in international markets. In 2025, Iran maintained its position as the world's tenth-largest steel exporter, with 13.5 million tons of steel exports. The company's export surplus relative to imports placed it fourth in net exports, after China, Japan, and South Korea.
This demonstrates that Mobarakeh Steel and Iran's steel industry have become influential players in export markets, beyond meeting domestic demand. The company's ability to navigate complex geopolitical challenges and security threats has enabled it to continue growing, even amid regional tensions.
Key points
- Iran's steel industry has reached 43rd place globally
- Mobarakeh Steel improved its ranking despite geopolitical challenges
- The company's DRI production has enabled it to achieve first place in the world
- Iran maintained its position as the world's tenth-largest steel exporter in 2025
If this development plays out positively, Iran's steel industry could continue to grow, becoming a leader in the regional green steel market and increasing its global presence. This could lead to increased economic stability and job creation, benefiting the country and its people.
However, the industry's growth could be hindered by ongoing geopolitical tensions, energy constraints, and technology sanctions, which may limit its ability to sustain production and expand its global market share. Additionally, the industry's reliance on indigenous expertise and domestic supply chains may make it vulnerable to internal disruptions.
