Localization, Iran’s Steel Shield in Difficult Days
Senior international iron and steel market analyst Keyvan Jafari‑Tehrani told Iraseen that localization has played a decisive role in strengthening the resilience of Iran’s steel industry, enabling major producers to sustain production and exports despite sanctions and challenging conditions.
In an interview with Iraseen, senior international iron and steel market analyst Keyvan JafariTehrani highlighted the decisive role of localization in strengthening the resilience of Iran’s steel industry.
Referring to recent incidents affecting major producers such as Mobarakeh Steel and Khuzestan Steel, he noted that without the localization of equipment and technology over the past years, sanctions could have created severe disruptions, making even the supply of simple industrial parts extremely difficult.
According to JafariTehrani, domestic manufacturing capacity has become the backbone of the industry’s resilience, enabling the continuity of production and exports even under challenging conditions.
He emphasized that localization across the steel value chain—from upstream sectors such as crushers, concentrate and pelletizing plants to midstream and downstream operations—has helped reduce production costs and maintain Iran’s competitiveness in global markets.
Rejecting misconceptions about product standards, he also stated that Iranian steel is recognized internationally as premium quality, noting that lower prices in some markets have largely been a consequence of sanctions rather than quality differences.
JafariTehrani described Mobarakeh Steel Company as one of the most successful examples of localization in the country, adding that the depth of domestic capabilities in this company has significantly strengthened its resilience in times of crisis.
He also pointed to the growing importance of uptodate scientific knowledge and new technologies in the future of the steel industry, particularly in areas such as processing lowgrade iron ore and reducing phosphorus levels—technologies that can play a key role in improving export competitiveness.
Source: irasin