Iran’s steel industry achieved a major milestone in early 2026. The country’s steel production ranked tenth globally during the first quarter. Iran produced 7.26 million tonnes of steel during that period, placing it behind Brazil, which produced 8.1 million tonnes.
The World Steel Association released a different set of figures, claiming that Vietnam had taken Iran’s tenth position. Vietnam reportedly produced 6.4 million tonnes during the same period. However, Iranian officials strongly rejected this data and insisted that Iran ranked tenth according to domestic statistics.
Mehdi Mohammadi, head of the Alloy Steel Producers Association, said the World Steel report was categorically untrue. He stated that Iran produced 7.26 million tonnes from late December through the entire first quarter. As a result, the industry maintained its global position.
The achievement demonstrates Iran’s industrial resilience, even under geopolitical pressure. The steel sector faced a difficult operating environment, and on April 7, the US and Israel reportedly targeted parts of Iran’s steel industry, including Mobarakeh Steel and Khuzestan Steel. Despite these strikes, the industry maintained its ranking.
The attacks caused disruption across key facilities. Several blast furnaces suffered damage, which initially raised fears of production setbacks. However, Nader Soleimani of the Steel Producers Association disputed the severity of the impact. He stated that production continued because the damage remained manageable.
Soleimani acknowledged localized damage but rejected claims of a complete production halt. He emphasized Iran’s reliance on domestic capabilities and parts localization. In addition, he noted the country’s experience in rebuilding after external pressure. As a result, the industry maintained continuity through adaptation and self-reliance.
Iran currently has the capacity to produce 33 million tonnes annually. However, utilization last year stood at 63 percent due to energy constraints. Even so, steelmakers expect higher utilization this year. Despite these limitations, the industry maintained its global rank.
Other segments of the steel sector continued operating at full capacity. Beam and rebar production faced no major disruptions. Where damage occurred, reconstruction timelines were estimated at under nine months. Consequently, production stability helped the industry maintain its position.
Mobarakeh Steel Company remained active in slab production, while also continuing output of hot-rolled coil and rolling sections. Although parts of the facility sustained damage, operations continued at scale. Therefore, supply chains remained largely functional.
The only short-term constraint involves slab shortages, projected at no more than 50,000 tonnes per month. The government issued import permits to address the gap. Hot-rolled coil supply could also face temporary pressure, although officials consider the risks manageable. Thus, the industry maintained operational stability.
Some market speculators raised concerns about rising car prices due to potential steel shortages. However, Industry Minister Mohammad Atabak dismissed these claims, stating that steel sheet supply remains stable. Consequently, the automotive sector continues to receive consistent support.
The war and sanctions may influence production trends temporarily, technical capacity and domestic manufacturing provide stability. Iran has previously demonstrated recovery under pressure, particularly after 2018 sanctions on its steel sector, which forced structural adaptation.
Those sanctions accelerated parts localization. Before 2018, Iran spent around $4.5 billion annually on imported components. Afterward, it launched large-scale domestic production, manufacturing tens of thousands of parts locally and reducing dependency on foreign supply chains.
Government policy further supported self-sufficiency by restricting certain imports. As a result, foreign currency outflows decreased significantly, falling from roughly $140 million to about $45 million annually. This shift strengthened internal production control and cost efficiency.
Before the 1979 revolution, Iran produced about one million tonnes of steel annually. Over time, output expanded despite war and economic pressure, reaching 1.2 million tonnes per year in earlier decades. Subsequent development plans focused on sustained industrial growth.
The 2025 Vision Plan set an ambitious target of 55 million tonnes of annual steel production. Iran now ranks ahead of several European countries, including France and Italy, in global output. Even so, the recent attacks on steel infrastructure were intended to disrupt this trajectory. Instead, officials argue that the sector adapted and continued operating, thereby maintaining its global standing through resilience and continuity.