Iran increases its steel production to become a threat for steel industry of Turkey

Turkey has made significant improvement in steel exports in recent years and is able to look at a more promising future as compared a decade earlier. However Turkey has also started to feel tough competition coming from one of its close neighbors.

In fact, Iran’s steel production has increased rapidly in recent years and begun to threaten Turkey’s steel industry. While Turkey has been under big pressure in imports of rebar, imports from Iran have increased by 5 fold owing to low prices with state incentives. Sector representatives draw attention to the point that there is unfair competition and require the administration to take necessary measures in regards, soonest possible.

Iran has managed to increase its steel production quite rapidly in recent years, upgrading its capacity it from 9 million tons in 2000s to 30 million in 2017. Based on monthly statistics data provided by World Steel Association Iran’s 9-month crude steel production was 18.5 million tons with a 20 percent increase compared to the previous year. Iran ranked second among countries with highest increase in steel production after Vietnam.

It is reported that Iran plans to increase its crude steel production capacity to 55 million tons corresponding to 100 percent increase by 2025 thanks to incentives provided by the state.

This increase in production in Iran’s steel industry and exports to Turkey has caused unease in the Turkey’s steel sector. Professionals in the sector comment the prices of imported goods are so low that they cannot be compared with product prices in Turkey and state that this gives the impression they have considerable government support in Iran. Thus Steel Exporters Association requires the government to take necessary measures to control this threatening situation for the local sector.