Iran steel industry faces energy risks and shifting export trends

The Iranian steel industry is facing significant operational challenges and shifting export dynamics. In Jordan, rebar prices have seen a notable decrease in mid-October due to moderate demand and increased competition from new market players. The availability of imported square billets from Iran, priced between $500 and $510 per ton, has contributed to this price drop. Despite regional conflict concerns, shipments from Iran to Jordan via Iraq are reportedly proceeding with only minor border delays.

Domestically, Alireza Ebrahimi, CEO of the Middle East Mining and Industrial Development Company (MIDCO), has warned of potential difficulties for Iran's steel sector during the upcoming winter. The primary concern is the supply of natural gas, which is critical for direct reduction units where it serves as both fuel and a necessary process material. While the industry has achieved over 90 percent domestic supply chain integration, energy infrastructure damage and seasonal shortages pose risks to sponge iron production and the broader steel value chain.