Gas & Electricity Shortage to Hit Steel Production in Iran
Strategic Research Institute
Published on :
16 Jan, 2023, 6:10 am
Iranian Financial Tribune reported that rebar export accounts for Lion’s share in Iranian finished steel exports this year. According to the Iranian Steel Producers Association, total exports of finished steel products during the first eight months of the current Iranian year (March 21-November 21) decreased by 2% YoY to 2.14 million tonnes with rebar export of 1.67 million tonnes up 7% YoY and 78% of total exports. Other finished products exported from Iran during the period included
Hot-rolled coil - 193,000 tonnes, down 39% YoY
L-beam, T-beam and other types of beam- 112,000 tonnes, down 10% YoY
Beams - 91,000 tonnes, down 5% YoY
Coated coil - 57,000 tonnes, down 26%
Cold-rolled coil - 14,000 tonnes, up 8% YoY
Total Finished Steel Production - 14.74 million tonnes, up 14% YoY
Long Steel Production - 8.65 million tonnes, up 17% YoY
Flat Steel Production - 6.08 million tonnes, up 10% YoY
However, a report in Iran International says that gas and electricity shortage will probably lead to a 2 million-tonne decrease in Iran’s steel production. The report quoted Iran’s Steel Manufacturers Association’s board member Mr Reza Shahrestani in an interview with ILNA said that “There is a severe gas shortage in steel companies. The steel industry needs 40 million cubic meters of gas daily, but at present their consumption has reached 15 million cubic meters per day. Gas shortage has also led to electricity shortage because the current amount of natural gas does not meet the needs of power plants to produce electricity. Almost 50% of the electricity supply for industries has been cut off too. It seems that the gas and electricity shortage will be more severe next year and if it continues like this. It will have a tangible impact on the production rate of all industries.”
Mr Shahrestani added that “In my opinion, the people, who are in office at the oil ministry, are not up to the task, so we are witnessing inefficiency in all fields.”