Profitability in Iran’s steel industry declined significantly during the summer of 2025. According to reports, the total net profit of companies across the steel value chain fell from 22,700 billion IRR in the spring to 16,300 billion IRR in the summer a 28% decrease.
Some companies, particularly mid-sized producers, experienced losses exceeding 100% in their net profits, while Hormozgan Steel recorded the highest profit growth during the same period. Overall, the sector’s total profitability in the third quarter of 2025 was approximately 40% lower compared to the same period last year.
Mobarakeh Steel Company reported a 32% decline in its summer net profit, reflecting the broader downward trend across the industry.
Experts point to four main factors behind the decline in profitability: production losses caused by summer electricity restrictions, rising energy costs, increased raw material prices (especially for concentrate and pellets), and falling global steel prices.
These developments once again highlight the growing cost pressures faced by Iran’s steel sector, driven by vulnerabilities in energy infrastructure and dependence on external markets.
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