Geopolitical crisis impacts crude steel output: Iran falls out of global top 10

According to June data released by the World Steel Association (worldsteel), despite a 1.7% increase in global crude steel production, the Middle East region experienced a sharp decline under the shadow of geopolitical tensions and military conflicts. Iran, the region's largest steel producer, dropped out of the top 10 global producers ranking.

Worldsteel data shows that global crude steel production in June 2026 reached 155.7 million tonnes, up 1.7% compared to the same period last year. However, despite this global recovery, production dynamics in the Middle East suffered a severe disruption.

Recent escalating conflicts, risks targeting steel facilities and infrastructure, alongside logistics and energy constraints, led to significant operational disruptions in Iran's steel sector. Iran, which has long held a position among the top 10 global steel-producing nations with an annual capacity exceeding 30 million tonnes, lost its place in the ranking as of June data. Following Iran’s exit, Vietnam entered the list in 10th place with 2.6 million tonnes, recording a robust growth of 27.5%.

Production halts in Iran and logistics disruptions across the Strait of Hormuz and Red Sea routes were directly reflected in the overall regional figures. The Middle East's total crude steel output in June fell by 13.4% year-on-year to 4.0 million tonnes. The state of war in the region made raw material supply and finished product exports increasingly difficult, forcing steelmakers to reduce their capacity utilization rates.

Amid this supply contraction and shifting regional balances in the Middle East, Türkiye emerged as a prominent actor with its steel production performance. In June, Türkiye raised its output by 14.7% to 3.3 million tonnes, solidifying its strong position among the top 10 producers (ranking 7th).

While output increases driven by China, India, and Türkiye pushed global totals upward, the ongoing warfare in the Middle East and the sharp decline in Iran's production continue to reshape regional supply dynamics.