Updates with threat to retaliatory strikes to Gulf steel producers in last paragraph.
Iranian steelmakers Khouzestan Steel (KhSC) and Mobarakeh Steel were hit by air strikes attributed to the US and Israel on Friday, which damaged storage facilities and power infrastructure, officials said.
The attacks are expected to reduce Iran's billet and slab production and export capacity.
KhSC, Iran's second-largest steelmaker with 2025 crude steel output of 4.2mn t, sustained hits to two storage silos, Khuzestan governorate security deputy Velayat Hayati said. Initial assessments indicate no impact on blast furnaces 1 and 2, which were off line at the time. The facility reported no casualties or injuries.
Esfahan-based MSC, which produced 7.1mn t of steel in 2025, suffered damage to a substation, an alloy steel line and a power plant, according to on-site reports. Production checks are continuing, with potential short-term outages at affected units, but full capacity details are pending expert evaluation.
The incidents follow a strike on Foolad Atieh (Asia Steel) on Thursday, which killed one person and injured two. No official production loss figures were released, but market participants expect minor domestic billet and slab price changes.
An industry ministry spokesperson confirmed partial facility damage. Operations are suspended pending safety checks. "We are assessing damage, shipments are delayed," a source said.
Several steel producers in Iran face gas and power shortages as a result of recent attacks on the South Pars gas field.
Iran's semi-finished exports amounted to around 550,000 t/month in 2024, according to Worldsteel data, about twice the level reported under Iranian customs data under HS code 7207.
Iran is preparing retaliatory strikes on Gulf steel producers, according to Iran's Tasnim news agency, which is linked to the Islamic Revolutionary Guard Corps. The plants listed include Saudi's Hadeed, UAE's Emsteel, Qatar Steel, Kuwait Steel, Bahrain Steel and Israel's Yehuda Steel.
