Productivity is the most important factor in the competitiveness of any industry. Since the steel industry is a resource-oriented industry and Iran owns the natural resources required by this industry, this industry is very substantial for the country. This study aims to identify the factors affecting productivity in the steel industry. Method: Data were collected from 24 semi-structured interviews with managers and senior experts and analyzed by open, axial and selective coding methods using an approach called Grand Theory. Findings: The effective factors identified in the productivity of the steel industry include: 1- Human factors (manpower productivity, labor force congestion in the public sector) 2- Technology factors (production technology, information technology infrastructure) 3- Political factors (Sanctions, competitors, exports) 4- Supporting factors (production capacity, infrastructure, reduction of bank interest rates)