A senior member of the Board of Directors of the Iranian Steel Producers Association (ISPA) has revealed that Iran's annual steel production capacity is set to achieve a target of 55 million tons (mt) by the year 2025.

Bahador Ehramian noted that this growth marks a significant increase, with Iran's steel output capacity having expanded by over sixfold within the past 20 years, currently expected to reach 45 mt per year.

Ehramian anticipates that Iran's steel output capacity will grow by more than 22% in the upcoming two years.

He emphasized that over half of Iran's current steel production is exported to foreign markets, and Iran aims to expand the locations it exports, given that domestic steel demand is expected to remain at around 20 mt per year in the coming years, leaving a large surplus for international trade.

Iran has witnessed a substantial surge in steel exports this year, driven by increased domestic production and the global supply shortages resulting from the war in Ukraine, as reported by Press TV.

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Figures released by ISPA in early September indicated that Iran's exports of semi-finished steel had reached 3.093 mt in the first five months of the year, reflecting a 24.8% year-on-year increase.

Furthermore, Iran experienced a remarkable 15% surge in exports of steel sheets and long steel products from March to August this year compared to the corresponding period last year. In parallel, overseas shipments of sponge iron skyrocketed by an astounding 232%, reaching a substantial 0.708 million tons, as reported by data from the ISPA.

Remarkably, Iran's increased steel exports have persisted despite the challenges posed by unilateral US sanctions, which have restricted access to conventional banking services for both exporters and their foreign customers.

A report published by the World Steel Association (WSA) in early July, showed that Iran’s production of crude steel constitutes 70% of total steel production in the Middle East. 

Last year, Iran maintained its position as the 10th largest global steel producer, with a production of 30.6 million mt of crude steel. Additionally, the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), under the Ministry of Industry, Mine and Trade, ranked 20th among the leading steelmaking companies worldwide.

Read more: Iran ranks 1st in crude steel production in the Middle East: Report