Construction Iraq opens steel plant project as post-conflict demand surges By Nadim Kawach May 16, 2025, 9:55 AM Alamy There is growing demand for Iraq's post-conflict reconstruction, including steel plants In southern port of Basra Will cost nearly $305m Surging demand for steel Iraq has commissioned a 600,000-tonne-per-year steel mill more than 10 years after the project was awarded to Italy’s Danieli Group. Industry and minerals minister Khaled Al-Najm opened the project in the southern port of Basra this week, hours after he laid the ground stone for the first steel industries park to be constructed by China’s Tsingshan Group in the same city. The state-run Iraq news agency quoted Al-Najm as saying that the project cost nearly IQD400 ($305 million) and that it is one of several steel plants to be built in Iraq to meet surging demand for the country’s post-conflict reconstruction. Al-Najm did not mention reasons for the delay in the operation of the plant but officials said last year that the project was hampered by domestic security and political turbulence. Danieli already has a presence in Iraq as it has been awarded deals for the supply of products for the construction sector. In 2024 Iraq’s news agency reported that Danieli was awarded a contract to build a new rolling mill plant for rebar production. The project is located in the industrial area of Al-Hilla near the capital Baghdad and will have an output capacity of 500,000 tonnes per year. China’s Tsingshan to build ‘steel city’ in Iraq Why Emsteel is not worried about rising Chinese imports Iraq to cut oil spending after fall in crude prices A study by the Industry Ministry estimated Iraq’s steel demand at more than 8 million tonnes per year and forecast a steady rise in the coming years. Officials have said several steel plants are planned in Iraq in anticipation of higher demand for so-called mega projects, including the $17 billion “Development Road” which includes the constructing a 1,200-km rail and a parallel motorway linking southern Iraq with the Turkish border in the north. The project, in which Turkey, Qatar and the UAE are shareholders, is expected to be completed in 2029. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
