Iran has suspended exports of certain steel products, including billets, slabs and different kinds of sheets until at least the end of May, China’s Xinhua News Agency reported on April 27, citing a statement made by Iran’s Trade Promotion Organization (TPO) on the same day.
"Hot, cold, rolled, tinned, galvanized, coated and colored steel sheets and strips" are among the steel items subject to the restriction, according to Xinhua, saying that the TPO stressed that should "the state of emergency continue, the export ban will be extended".
Iran had previously prohibited the overseas sale of certain chemicals, petrochemicals and polymers, Xinhua noted.
The decision of Tehran's industry and trade ministry and the Supreme National Security Council to "ban" steel exports might also be an acceptance of reality, namely that Iran's capacity to export steel has been significantly reduced since hostilities erupted in the Middle East in February, Mysteel Global notes.
The suspension was decided in response to the partial shutdowns of two major Iranian steel plants – Mobarakeh Steel Company in Isfahan province in central Iran and the Khuzestan Steel Company in Khuzestan province in the southwest. The mills, which contributed nearly 50% of the country's crude steel output last year, were damaged in attacks by US and Israel on March 27, as reported.
Meanwhile, the direct impact of this export ban on China will be minor, given the fact that China imports no steel items or very limited volumes from Iran. However, the indirect impact on China of the retreat of Iranian steel exports from other markets could be consequential and may even be a boon for China, Mysteel Global notes.
With Iran being the world's tenth largest steel producer in 2025 and a critical supplier of semi-finished and finished items to Southeast Asia and Middle East, the absence of Iranian steel may create a supply gap of around 5-5.5 million tonnes/year in these regions, with semis accounting for roughly 2-2.5 million tonnes/year, as reported.
Leveraging its capacity and channel advantages, China has rapidly moved to fill a global gap in the specific market niche of semi-finished items.
According to data from China's General Administration of Customs (GACC), during March China's exports of semis worldwide soared by a whopping 66% on month and 48.4% on year to reach 1.53 million tonnes. Within the total, billets accounted for roughly 62% or 951,998 tonnes, up 60% on year, while slab accounted for 37% or 329,096 tonnes, up by a huge 109% on year, Mysteel calculated based on the GACC data.
Source:Mysteel Global
