According to media reports, US-Israeli forces have carried out airstrikes on Iran’s Isfahan province as a result of the escalating hostilities between the parties. It is stated that along with others, Iran’s two steel mills, Mobarakeh Steel and Khouzestan Steel, have been under attack. No additional information has been released regarding the scale of the damage caused and the current state of the production facilities. In the meantime, some of the media sources have been reporting that Iran is aiming at key steel producing facilities across the GCC.
Mobarakeh Steel Company (over 8 million mt DRI and close to 7 million mt of HRC) is the major flats producer in Iran and, along with Khouzestan Steel Company (3.6-3.8 million mt crude steel per year), used to be one of the major slab exporters prior to the war. The latter was also one of the key steel billet producers and exporters from Iran. Some of the media sources state that a power plant and a part of alloy steel production line were hit at Mobarakeh, while there is no information about the damage at Khouzestan. Both mills are essential for the local steel industry of Iran.
The impact of war on the steel industry in the GCC might deepen depending on further actions of the parties. Early on March 27, Tasnim News Agency has published the information regarding Iran’s warning to perform the strikes on steel factories in Israel and five Gulf states in case the attacks on Iranian facilities continue. The list of the targets involves Hadeed (KSA), Emirates Steel Arkan (UAE), Qatar Steel (Qatar), Foulath (Bahrain), Kuwait Steel (Kuwait), Yehuda Steel (Israel).
