In recent years, China's steel exports to Iraq have been growing rapidly. The latest customs data show that the steel export volume in January-March 2025 has reached 399,000 tons, an increase of 54.1% from the same period last year.

The Iraqi steel market has strong demand, and economic vitality is gradually recovering. In September 2019, China and Iraq reached a series of cooperation agreements and officially opened the oil for reconstruction cooperation model. According to the relevant agreement, Iraq promised to supply 100,000 barrels of oil to China every day, and Chinese companies have invested in the reconstruction of Iraq's infrastructure.

In 2023, Iraq's steel imports were about 8 million tons, accounting for more than 70% of domestic consumption, and the import amount will exceed US$10 billion. Domestic production capacity can only meet about 30% of demand, and is mainly low-end long products.