Iran sponge iron production falls 35% in September

Sponge iron (DRI) production across the Middle East and North Africa (MENA) region continued a downward trend in September, driven by geopolitical tensions, energy supply constraints, and logistical disruptions. According to Worldsteel data, total DRI production in major regional countries fell 18.8% during the first nine months of 2026, reaching approximately 32 million tons.

Iran, the region's largest producer, saw its nine-month production drop by 18.8% to 21.4 million tons. Specifically, in September, Iranian sponge iron production plummeted by 35.2% compared to the same month last year. Market analysts attribute this decline primarily to frequent energy supply shortages and maritime transport difficulties that hinder the export of metallized products.

Other major regional producers also reported significant declines. Saudi Arabia experienced a 42.3% drop in cumulative production for the first nine months, while Qatar saw a 43.4% decrease. These declines are linked to reduced capacity utilization and logistical issues in the Persian Gulf, including difficulties in securing pelletized iron ore and other essential raw materials.