Mobarakeh Steel Company

Stock performance

History

Mobarakeh Steel's plant near Isfahan was planned before the revolution, built in the 1980s, and began production in the early 1990s, becoming the centerpiece of Iran's push to develop heavy industry. It was later partly privatized and listed on the Tehran Stock Exchange, where it is one of the largest companies by market value.

Business model

The company produces flat steel products, including hot-rolled, cold-rolled, and coated sheet, using natural-gas-based direct reduction of iron ore followed by electric arc furnaces, a route that takes advantage of Iran's abundant cheap gas. It sells to domestic automotive, appliance, and construction customers and exports a significant share of its output.

Market position

Mobarakeh Steel is the largest steel producer in Iran and one of the largest in the Middle East and North Africa, helping make Iran one of the world's ten largest steel producers.

Country impact

Steel is one of Iran's most important non-oil exports, so Mobarakeh's output matters for the country's foreign-currency earnings. Its heavy energy use also exposes it to Iran's chronic electricity and gas shortages, which in peak demand seasons have forced the government to cut supplies to steelmakers and reduce output.