U.S. President Trump announced on Tuesday that the U.S. government will implement "the highest level of economic sanctions" against Iran. Once the United States withdraws from the Iranian nuclear agreement in 2015, it will significantly slow Iran’s expansion of its steel production capacity, and its impact on steel and iron ore exports will be relatively limited.
Since 2015, Iran has been working hard to promote the development of the national steel industry. The project plans to increase Iran’s steel production capacity from the current 32 million tons per year to 55 million tons per year in 2025, almost doubling its capacity.
It is expected that the financing difficulties brought about by the United States’ resumption of economic sanctions against Iran will severely crack down on new steel plant projects or ongoing steel projects. Sources said that due to the uncertainty of U.S. policy, many steel-related projects have come to a standstill. For these projects, financing has always been a big problem because they are only allowed to cooperate with banks that have no relationship with the United States.
If Iran cannot cooperate with European metallurgical equipment manufacturers, it is expected that Iran will shift more to China to seek the technical equipment required for steel and metal development projects.
