Oțelu Roșu is a town in northeastern Caraș-Severin County, Romania, in the Bistra Valley. It is situated on the national road 68, between Caransebeș and Hațeg. The town administers two villages, Cireșa (Bisztracseres) and Mal (Mál). It is situated in the historical region of Banat.

Caraș-Severin is a county (județ) of Romania on the border with Serbia. The majority of its territory lies within the historical region of Banat, with a few northeastern villages considered part of Transylvania. The county seat is Reșița. The Caraș-Severin county is part of the Danube–Criș–Mureș–Tisa Euroregion.