The Iranian metals market is currently facing numerous challenges that have affected supply and demand. One of the most important of these challenges is the steel industry’s heavy dependence on natural gas, with about 70 percent of the industry’s energy needs being supplied by gas. In past winters, a 40% reduction in gas deliveries to the steel industry has led to a 30% drop in production. With a cold and dry winter forecast this year, there is a possibility of more widespread gas outages, which could further impact steel production.
In addition to energy supply problems, stagnation in the hardware market and reduced demand are other issues facing the Iranian metals market. The decline in construction activities and steel-consuming industries, especially in sectors such as automotive, has led to a decline in demand for steel products. This decline in demand is so great that even a reduction in supply has failed to improve prices. Currency rate fluctuations and the rising USD exchange rate have further destabilized the market, driving investors toward safer havens such as gold and the US dollar.
Globally, forecasts indicate that the mineral metals market will experience a recession in 2025. Decreased demand for metals such as lithium, nickel, and cobalt—driven by the slowing transition toward renewable energy and electric vehicles—could lead to a decline in their prices. This trend could also impact Iran’s metals market, as global price fluctuations directly affect domestic producers and consumers.
Overall, the Iranian metals market currently faces internal challenges such as energy supply problems and demand stagnation, as well as external impacts resulting from changes in global markets. Adopting appropriate measures to manage energy resources, stimulate demand in consumer markets, and closely monitor global developments can help improve the situation in this market.
