12,937.87 TRY BIST 100 BIST 100
44.47 USD USD USD
6.51 CNY CNY CNY
51.28 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
42.68 TRY Interest Interest
106.92 USD Fossil Oil Fossil Oil
5.53 USD Copper Copper
101.11 USD Silver Silver
107.51 USD Iron Ore Iron Ore
378.00 USD Shipbreaking Scrap Shipbreaking Scrap
6,692.61 TRY Gold (gr) Gold (gr)
108.00 USD Iron Ore 61% Fe Iron Ore 61% Fe

Soaring Energy Costs Devour Iranian Steelmakers’ Profits

An analysis of steelmakers' financial reports shows that their declining profitability in the March–June 2025 is less due to internal performance and more the result of unprecedented energy price hikes and the structural imbalances in the country’s economy.

Soaring Energy Costs Devour Iranian Steelmakers’ Profits

Mobarakeh Steel exemplifies these pressures, having experienced an 835% increase in energy costs over five years, with its production costs jumping from 410 trillion IRR in 2020 to 1,800 trillion IRR in 2024–2025.

A mismatch between selling prices and inflation, domestic recession, rising financing costs, and electricity and gas restrictions have pushed steelmakers toward shrinking profit margins and serious operational challenges.

According to the Iranian Steel Producers Association, the steel industry has faced a $5.5 billion loss in 2024–2025 due to the country’s energy imbalance.

The association states that over the past four years, the total damage from energy shortages in the industry has exceeded $14 billion, marking a serious warning sign for the sustainability of Iran’s steel production and exports.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

Iran’s Mobarakeh Steel halts production completely following attacks

Thursday, April 2, 2026

thyssenkrupp Steel Europe calls on the EU to protect electrical steel production from low-cost imports

Thursday, April 2, 2026

Egypt to impose a three-year safeguard duty on billet imports

Thursday, April 2, 2026

WSJ: Trump Administration Restructures Steel and Aluminum Tariffs

Thursday, April 2, 2026

An anti-dumping investigation has been launched into rebar imports from Egypt, China, Tunisia, and Türkiye

Thursday, April 2, 2026
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now