Contrary to forecasts, steel prices in Iraq are now decreasing

Market experts had anticipated that the Iraqi steel market would strengthen following Iran’s export restrictions, expecting local producers to gain a more advantageous position, which would support an upward trend in prices. However, the scenario did not unfold as expected.

According to experts, the main factors triggering the price decline are as follows:

Demand remained below expectations:
The anticipated momentum in the construction and industrial sectors did not materialize. Weak domestic demand prevented upward price support and put pressure on the market.

Six new producers entered the market:
Recently launched production at Sabaik, Aldhawary, BC, Hilal Babl, Iraq Steel and Star Steel has significantly increased supply. Expanded supply and intensified competition played a critical role in pushing prices downward.

Cash shortage weakened purchasing power:
Ongoing liquidity problems in the economy reduced the purchasing power of both traders and end buyers, leading to persistently low demand. This situation makes price recovery difficult.

Flow of smuggled Iranian products continues:
Despite official restrictions, steel products from Iran reportedly continue to enter the Iraqi market illegally. The low prices of these products drag down the overall market level and disrupt the balance.

Experts note that unless current conditions change, it will be difficult for prices to show a strong upward trend in the short term. They also underline that for the market to stabilize, both an improvement in demand and control over the inflow of unregistered products are necessary.

Current Steel Prices in Iraq – Regional Overview

Northern Iraq Mills:

• Van Steel: $625/ton

• FF Steel: $620/ton

• Mass Steel: $665/ton

• Other producers: $575–585/ton

Southern Iraq Mills:

• ARG: $580/ton

• KFG: $565/ton

• Karbala: $550/ton

• Other producers: $550–565/ton