Iran’s Steel Production Falls 6.7% Amid Energy Imbalances
TEHRAN (Iran News) Farzaneh Piri, the association highlighted that the intensified drop in steel production stems from energy shortages, particularly restrictions on electricity and gas supplies. The rate of decline has worsened over the year, rising from 4.8% in the first nine months to 5.5% in ten months, and now reaching 6.7% over 11 months.
Energy limitations have slashed Iran’s intermediate steel production by approximately 2 million tons, valued at around $1 billion. Of this reduction, 75% pertains to steel billet output, reflecting the disproportionate impact of power and gas constraints on small and medium-sized private sector units.
Severe gas shortages have also hampered the output of newly operational sponge iron capacities, further contributing to the decline. While iron ore concentrate production has seen an uptick, pellet production has recorded a decrease.
Following steel billets, rebar has experienced the second-highest rate of production decline in the steel supply chain, largely due to a sharp domestic market recession and reduced exports.
- source : IRAN NEWS ECONOMIC DESK
