Steel Summit 2025, one of the most prestigious events in the global steel industry, commenced on May 15, 2025, at the Swissôtel Resort & Spa Çeşme in Izmir, Türkiye, with the significant participation of over 300 attendees from more than 150 companies across leading steel-producing and trading nations such as China, Italy, India, Belgium, Egypt, Germany, Iran, Qatar, and the United Arab Emirates. The summit covered key topics including the green transition in steel production, waste management strategies, price trends, global market dynamics, and Türkiye’s strategic role in the industry.
With more than 30 speakers across 8 sessions, discussions focused on sustainability, decarbonization, innovative technologies, the impact of energy and geopolitical shifts on scrap markets, and the macroeconomic outlook of Türkiye’s steel industry.
In one of the most important specialized sessions of the Steel 2025 Summit, prominent steel and iron ore activists from different countries discussed export strategies, environmental requirements, and the future of the regional market. The panel was chaired by Keyvan Jafari Tehrani, Senior Analyst of Global Markets, and was attended by experts from Egypt and Iran, and important points were raised regarding the evolution of the regional steel industry.
Key Highlights and Discussions:
Egypt's iron ore exports to China; A promising success with an unknown roadmap
Dr. Aya Elghery discussed Egypt's first iron ore shipment to China, highlighting the country’s reliance on hematite resources with 52%-62% Fe content. Despite Egypt’s limited track record in this sector, she emphasized new opportunities and ongoing challenges, including price volatility, intense competition, and the lack of modern transport infrastructure.
Can Iran import iron ore from Egypt? With Iran’s iron ore reserves expected to decline within the next decade, discussions arose regarding potential imports from Egypt. While Elghery did not provide a definitive answer, Keivan Jafari Tehrani, a senior global market analyst, pointed out that North African nations such as Egypt, Morocco, and Jordan could become viable alternatives for Iran, especially if sanctions ease.
Egypt as a regional steel hub? Elghery expressed optimism about Egypt’s potential to become a regional steel production and export center, stressing the need for infrastructure development and foreign investment. Conversely, Tehrani warned of geopolitical risks, particularly Egypt’s declining revenue from the Suez Canal and potential rival trade routes emerging from nations like Saudi Arabia, which could disrupt Egypt’s steel industry growth.
U.S. and EU tariffs: A wake-up call for the Middle East
Prof. Alia El Mahdi analyzed the impact of protectionist policies by the U.S. and the European Union, emphasizing the need for regional cooperation to counter tariff barriers. She recommended that steel producers focus on higher-value-added products to remain competitive in target markets.
Diversification in steel products: A survival strategy Addressing the challenges of an increasingly competitive market, Prof. El Mahdi argued that regional steelmakers should move beyond billets and slabs and invest in specialized rolling mills and high-tech industrial alloys.
Green steel: A challenge or opportunity? The EU’s Carbon Border Adjustment Mechanism (CBAM) was another major topic, with Tehrani warning that achieving green steel production by 2030 is particularly challenging for sanctioned nations like Iran due to its reliance on iron ore and induction furnaces, unlike Türkiye, which uses scrap-based production.
From Afghanistan to Morocco: Iran’s Alternative Iron Ore Supply Options
Referring to his field visits to Afghan mines, Jafari Tehrani noted that before the Taliban took control, Iran was able to import part of its iron ore supply from Afghanistan. However, political instability and Taliban-imposed restrictions have now made this impossible.
He further emphasized that Morocco’s mines, particularly those with 62% iron ore reserves in Sangan, could become a viable option for Iranian imports in the future.
How Iran Maintains Its Tenth Place in Global Steel Production?
Jafari Tehrani highlighted the critical role of new investments in sustaining and enhancing Iran’s ranking in the global steel industry.
Although Iran’s steel master plan envisions a capacity of 55 million tons, actual production last year fell below 30 million tons.
He stated, "If sanctions are lifted, Iran has the potential to not only maintain its tenth place but even improve its global standing."
Iran’s steel sector: Strengths and challenges in regional competition
Amir Aligholizadeh, an expert in the steel industry, provided a comprehensive analysis of Iran’s strategic position, highlighting both sanction-induced limitations and growth opportunities. He explained that Iran benefits from abundant natural resources, a skilled labor force, and full integration across the steel value chain, but faces major infrastructure challenges and financial barriers.
Geopolitics and steel trade: Strategic considerations Jafari Tehrani stressed that Iran's ability to maintain its global top 10 steel ranking depends on investment, policy reforms, and trade agreements with friendly nations. He also explored alternative raw material suppliers, including Afghanistan and Morocco, as potential substitutes for Iran’s diminishing domestic reserves.
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During his speech, Aligholizadeh presented several slides illustrating the current state of steel production in Iran and future development plans for the sector.
In response to a question regarding the low utilization rate of Iran’s steel production capacity, he stated:
"The Capacity Utilization Rate index has recently been discussed in many steel industry articles, but this metric alone is not a sufficient criterion for evaluation. For instance, Turkey’s utilization rate stands at 62%, Iran’s at 64%, and Russia’s at 61%. The key factor is the market’s supply-demand dynamics. Currently, supply remains stable or is even increasing, while demand is declining an ongoing trend expected to persist." He further noted that given these circumstances, it is crucial to assess whether investment in the sector is justified.
"In my opinion, the Iranian steel market still holds investment potential. However, investing in high-value-added products, such as electrical steel sheets, requires a high degree of caution and thorough analysis," he emphasized.
"In the sanctions sector, we primarily observe negative impacts on banking transactions and access to modern technologies," Aligholizadeh stated, identifying sanctions and infrastructure challenges as the two key factors behind Iran’s low capacity utilization.
However, Iran has largely adapted to these restrictions over the past 45 years; today, over 92% of the country's crude steel is produced using the Electric Arc Furnace (EAF) method, which relies on advanced technology. Some of Iran’s production centers are also equipped with cutting-edge technology, though sanctions continue to severely hinder exports, requiring a more strategic approach.
Regarding infrastructure challenges, he noted that Iran’s crude steel production decreased from 32 million tons in 2023 to 30.7 million tons in 2024, with production dropping more than 30% in summer and winter due to electricity and natural gas shortages. "Although Iran is the world's third-largest gas producer, it is also the fourth-largest consumer," Aligholizadeh pointed out. To address this, Iran has two key programs:
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Investing in natural gas fields in the south of the country
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Enhancing efficiency and managing consumption in the household sector
In the electricity sector, a 9,000 MW infrastructure plan is underway, incorporating combined cycle plants and renewable energy sources, with 3,100 MW already added to the grid. However, this initiative alone is insufficient, and energy infrastructure remains the biggest challenge for Iran’s steel industry.
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Iran’s Advantages and Challenges in Regional Competition
Aligholizadeh analyzed Iran’s competitive position against regional players such as Turkey, Saudi Arabia, and Egypt, highlighting both strengths and obstacles.
"One of Iran’s greatest advantages is its strategic geopolitical position, providing access to the high seas from the Caspian Sea to the Persian Gulf," he stated. The Persian Gulf, with a history spanning over 3,500 years, remains an integral part of regional trade, regardless of attempts to alter historical narratives.
Iran’s other key strengths include:
- Low gas and electricity costs
- Affordable labor
- Abundant iron ore reserves
- A fully integrated steel production chain, spanning mining to finished products
Additionally, human resources stand out as Iran’s most valuable asset in the steel industry. According to Aligholizadeh, the educated younger generation, combined with seasoned professionals, has built a strong foundation for the industry. This strength has partly emerged due to sanctions, which have compelled Iran to rely more on domestic capabilities.
Challenges Facing Iran’s Steel Industry
The steel sector in Iran is struggling with an imbalance between production capacity and existing infrastructure, which has negatively impacted the industry and related investments. Additionally, issues with international financial transactions and the risk of losing export markets remain major challenges for the sector.
Mining and Exploration: The Focus of Future Investments
Responding to a question about development programs and new investment projects, Aligholizadeh emphasized that the most significant investments in Iran’s steel industry are centered on mining and mineral exploration.
"While some of Iran’s investment projects were presented in slides, the crucial factor is the nature of these investments," he stated. "These initiatives primarily aim to expand mining operations and mineral exploration to ensure a stable raw material supply and increase extraction capacity."
He further noted that Iran has established solid planning for investment in exploration, with the import of mining machinery currently on the agenda. These measures are expected to significantly enhance the country’s extraction capacity in the coming years.
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