Global crises and the inefficiency of linear development models have highlighted the necessity of transitioning toward sustainable development and a circular economy,particularly in the steel industry due to its high energy consumption and carbon emissions.This study was conducted with the aim of identifying the challenges associated with implementing a smart circular economy in the steel industry.The research adopted a mixed-methods approach(qualitative–quantitative).In the qualitative phase,thematic analysis was employed to identify the challenges,while in the quantitative phase,the relationships among these challenges were analyzed using Fuzzy Cognitive Mapping(FCM).The statistical population consisted of experts in the steel industry.Data were collected through interviews in the qualitative phase and questionnaires in the quantitative phase.The interview process continued until theoretical saturation was achieved,which occurred after conducting 15 interviews.The qualitative findings revealed that the implementation of a smart circular economy in the steel industry is confronted with a set of multidimensional challenges.In total,58 basic-themes(challenges)were extracted,which,after coding and aggregation,were categorized into13 organizing-themes and 6global-themes.FCM classified these challenges into three categories based on their level of influence: influential,influenced,and ordinary factors,indicating the systemic,interconnected,and interdependent nature of these challenges.Influential factors included “limited managerial attitudes and approaches”,“supportive laws and regulations”,“macro-level policies and external constraints”,“market conditions and supply chain status”,and “technical and technological infrastructure” which play a key driving role in implementing this approach.Accordingly,reforming managerial attitudes,expanding sustainable management training programs,strengthening transformational leadership,establishing green performance incentives,revising supportive regulations,and formulating incentive policies for investment in clean technologies can serve as key measures to facilities the transition toward a smart circular economy in the steel industry.