Expectations AL – Hadeed Foundation for Economic Development for the Steel and Iron in the Iraq Industry in 2025
AL – Hadeed Foundation for Economic Development Expect significant growth in domestic demand for iron in Iraq during 2025. This forecast is supported by an improvement in manufacturing activity and an increase in the number of iron and steel factories. This recovery is attributed to general consumption improvement and the enhancement of local industry through the imposition of protective measures and support for locally produced rebar.
Key Factors of the expectations:
• A noticeable increase in local demand for iron in Iraq has been observed, mainly due to the decision to impose additional customs duties on rebar imports.
• The decision was made to support local products by imposing a 20% tariff on rebar imports with diameters between 10 and 32 mm , In addition to a 6% customs fee . This measure aims to protect Iraqi products from foreign competition and ensure their stability in the local market.
• The support provided AL – Hadeed Foundation for Economic Development, particularly following Cabinet Resolution No. (24426) of 2024, contributes significantly to boosting local
production. This step is seen as crucial in protecting Iraq’s industry and reducing reliance on imported iron.
• The corporation is expected to take further steps to increase customs duties on imported rebar, supporting the continued growth of local production and stabilizing the market.
• This anticipated increase is part of a long-term strategy to enhance the competitiveness of local products in both domestic and global markets.
These measures also aim to regulate the market, avoid unjustified price increases, and ensure a stable supply of high-quality iron and steel. The Foundation is currently in the process of increasing the customs price of imported rebar from $450 per ton to $650 per ton, which will contribute to raising customs tariffs on imports and positively reflect on the competitiveness of locally produced iron.
Future Outlook:
The International Monetary Fund’s forecasts for Arab economies indicate that Iraq’s economic growth rate will rise from 0.10% in 2024 to 4.10% in 2025. This growth is expected to positively impact the increase in GDP and, consequently, the consumption of construction materials in general, including rebar.
By 2025, Iraq is likely to witness significant growth in the iron sector, driven by regulatory measures and government policies aimed at strengthening local products.
