Steel industry shifts as Iranian exporters gain direct access and face Chinese competition

The Iranian steel industry is experiencing shifts in export dynamics due to new currency exchange mechanisms and increased competition from China. Ahmad Aminfar, Secretary of the Iranian Steel Rollers Association, noted that the implementation of the agreed currency exchange hall has enabled manufacturers to engage in direct exports. Previously, a significant gap between domestic and export prices led producers to sell locally, leaving export activities to traders holding commercial cards. The new mechanism has increased the share of direct exports by factories.

Simultaneously, China has seen a massive surge in steel billet exports to the Persian Gulf region. According to data from the first eight months of 2026, Chinese billet exports to the region exceeded 1.7 million tons, a 166.7% increase compared to the previous year. Saudi Arabia and the United Arab Emirates are major importers of these Chinese products. Amin Ebrahimi, CEO of Khuzestan Steel Company, attributed this growth to both regional supply gaps and China's structural price advantages driven by global overcapacity. He noted that while Iranian steel is returning to the market at prices between $415 and $420 FOB, reclaiming market share from China will require strategic planning and stable energy supplies.