Azerbaijan's metal and metallurgy production shrinks in 10M2025
Azerbaijan’s industrial landscape in the first ten months of 2025 showed signs of deceleration, with the metallurgy sector emerging as one of the most affected areas. The softening demand in both domestic and international markets has contributed to lower production volumes, creating pressure on manufacturers and signaling broader challenges in the country’s industrial diversification efforts.
Decline in Steel Output
Steel production — a core component of the country’s metallurgical industry — experienced a noticeable decline. Drops in crude steel and rebar output reflect reduced construction activity and fluctuating global steel prices. This decline has led to increased stockpiles among producers, indicating that supply is outpacing demand and causing temporary strain on production cycles.
Value of Metallurgy and Metal Fabrication Falls
The combined value of metallurgy and metal fabrication output also contracted during the period. Lower production levels, combined with reduced value-added processing, weakened these industries’ contribution to the national economy. The reduction suggests both operational slowdowns and possible pricing pressures due to increased competition or lower global metal price benchmarks.
Weakness in Key Metal Categories
Several key categories within the metal sector — such as cast steel, rebar, and copper wire — saw significant year-on-year declines. These declines indicate difficulties in downstream sectors that rely on steady industrial or construction demand. The sharp drop in copper wire production, in particular, reflects lower export orders and subdued manufacturing activity, highlighting structural challenges in the value chain.
Raw Metal and Ore Output Shows Contrasting Growth
Despite declines in processed metal categories, Azerbaijan saw notable growth in raw metal and ore extraction. This divergence suggests that while upstream mining activities are expanding, downstream processing industries are not keeping pace. If this gap continues, Azerbaijan risks becoming more dependent on exporting raw materials rather than developing higher-value metal processing capabilities.
Despite declines in processed metal categories, Azerbaijan saw notable growth in raw metal and ore extraction. This divergence suggests that while upstream mining activities are expanding, downstream processing industries are not keeping pace. If this gap continues, Azerbaijan risks becoming more dependent on exporting raw materials rather than developing higher-value metal processing capabilities.
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