# Over 12.7m tons of long steel products produced in a year

- Link: https://www.tehranianonline.com/over-12-7m-tons-of-long-steel-products-produced-in-a-year/
- Published: 2026-05-24T00:40:40+03:30
- Author: Hassan Dehestani

Based on the ISIPA data, the country’s long steel products output in 1404 fell 1.1
percent from the production figure in 1403, which was 12.856 million tons.

Long steel products are shaped steel items where the length significantly exceeds
the cross-section dimensions, including rebar, wire rod, merchant bars, sections(
I-beams, angles, channels), and railway rails. They are typically produced through
hot rolling of billet or bloom in rolling mills, followed by cooling, straightening,
and cutting to length.

Rebar and wire rod dominate demand, driven by construction and infrastructure—used
for concrete reinforcement, fencing, nails, cables, and mesh. Merchant bars serve
structural framing, fasteners, and general engineering. Rails and heavy sections
support railways, bridges, and heavy machinery. Unlike flat products, long products
are highly customizable in shapes, lengths, and grades, often requiring smaller 
batch sizes.

Globally, long steel accounts for roughly one-third of finished steel consumption,
with strong ties to urbanization and construction cycles. Micro-alloyed and high-
strength rebars improve earthquake resistance and reduce material use. Electric 
arc furnace mini-mills frequently produce long products from scrap, offering lower
carbon footprint. As developing nations build roads, buildings, and railways, demand
for long steel remains robust, while advanced economies focus on specialty bars 
and high-quality wire rod for automotive and industrial applications.

It is worth mentioning that according to the statistics of the Iranian Steel Producers
Association, steel production in Iran during the past Iranian calendar year 1404
has recorded a growth of over six percent.

The association has published the statistics for the year 1404 of the country’s 
steel chain. Accordingly, despite intensified energy restrictions, due to optimal
management and the introduction of new capacities—both in production and in energy
self-sufficiency by steelmakers—Iran’s steel production increased by 6.2 percent.
Thus, Iran’s steel production in 1404 reached 32.1 million tons, equaling the production
level of 1402.

The total production volume of steel products in the country in 1404, however, experienced
a reverse trend, declining by 1.8 percent. Meanwhile, sponge iron recorded the highest
production growth among steel chain products, with a 16-percent increase. However,
in the upstream of the steel chain, production of pellets and iron ore concentrate
remained at the same levels as the previous year.

According to this report, the significant growth in sponge iron production—due to
new capacities coming online on one hand—and the stabilization of pellet and iron
ore concentrate production on the other hand, indicates a worsening shortage of 
raw materials for direct reduction units. However, with the shutdown of more than
14 million tons of sponge iron production capacity due to damages caused by the 
third imposed war, this shortage will be temporarily absent.

A 3.8-percent increase in steel ingot production against a 1.1-percent decrease 
in long steel product production indicates the need to develop steel ingot exports.
It is noteworthy that the shutdown of more than two million tons of steel ingot 
capacity due to the third imposed war can be compensated by activating idle capacities
for producing this product.

Production of various steel sheets in 1404 remained almost at the level of the previous
year. Meanwhile, slab production saw a double-digit growth of 10.2 percent. Unfortunately,
due to the damages inflicted on slab-producing companies during the imposed war,
the balance of the flat steel products chain has been disrupted, making the import
of slabs and hot-rolled sheets necessary and urgent.

Iran’s steel industry is a cornerstone of its non-oil economy, having grown into
a significant global player. In 2025, the country produced approximately 32 million
tons of crude steel, securing its position as the world’s 10th-largest producer.

Beyond crude steel, Iran is a major force in the global direct reduced iron (DRI)
market. The nation produced roughly 37 million tons of DRI in 2025, accounting for
about a quarter of the world’s total supply. This DRI is used by its modern electric
arc furnace (EAF) mills, which form the backbone of its steelmaking capacity. However,
the industry has faced severe headwinds. In early 2026, military strikes on key 
facilities, including the country’s two largest steel plants, caused major disruptions.
This came on top of long-standing challenges like international sanctions, domestic
inflation, and energy shortages from power and gas cuts.

Despite these obstacles, the sector remains a vital export earner. It exports a 
significant portion of its output, with semi-finished steel products being a primary
driver. While its immediate outlook is clouded by conflict, Iran’s steel industry
is a testament to resilience and strategic industrial development on the global 
stage.

Iran’s steel industry produces a comprehensive range of products, from semi-finished
materials to value-added goods, supporting construction, automotive, infrastructure,
and manufacturing. The sector can be broken down into several key categories:

Semi-Finished Steel

The industry’s backbone consists of products like billet, bloom, and slab, with 
Iran producing over 20 million tons of these in an eight-month period alone.

Flat Steel Products

Led by Mobarakeh Steel Company (MSC), the largest steel producer in the West Asia
and North Africa, Iran’s flat steel output includes hot-rolled and cold-rolled coils,
as well as coated products such as galvanized and pre-painted sheets. These high-
quality sheets are used in major national projects, including large-scale water 
pipelines.

Long Steel Products

Specialized in by companies like Esfahan Steel Company (ESCO), this segment includes:

* Rebar (reinforcement bars) for construction

* Structural sections like I-beams, H-profiles, channels, and angles

* Railway rails – ESCO is Iran’s sole producer of rail tracks

Tubular and Finished Steel Products

These include various welded pipes, galvanized tubes for water and gas, and advanced
automotive steel grades like CK45 and S650MC high-strength sheets, which have recently
been produced locally to reduce import dependence.

Overall, the diversity of products demonstrates Iran’s growing self-sufficiency 
and its role as a significant global steel producer.

According to the data released by the World Steel Association (WSA), Iran’s crude
steel production rose 15.1 percent year-on-year to 2.6 million tons in January 2026.

The figures show Iran maintained its position as the world’s tenth-largest steel
producer, outperforming the broader global trend.

Global crude steel production across 69 countries totaled 147.3 million tons in 
January, down 6.5 percent compared with January 2025.

China, the world’s largest steel producer, recorded a 13.9 percent decline in output
to 75.3 million tons. India produced 15.1 million tons, up 10.5 percent year-on-
year, while the United States posted a 3.3 percent increase to 7.1 million tons.

South Korea’s output rose 5.0 percent to 5.6 million tons. Japan produced 6.8 million
tons, down 0.5 percent, and Brazil’s production fell 1.4 percent to 2.7 million 
tons.

Germany registered a 15 percent increase to 3.1 million tons, while Russia’s output
declined 7.4 percent to 5.5 million tons. Turkey produced 3.4 million tons, up 5.8
percent year-on-year.

The data indicate that while global steel production contracted at the start of 
2026, Iran expanded output at a double-digit pace, consolidating its ranking among
leading producers.

According to World Steel Association’s previous report, Iran’s steel production 
reached three million tons in December 2025, registering more than 16 percent growth
compared to the same period last year.

The country remained in tenth place globally with a total steel production of approximately
32 million tons in 2025.
