Iran's Steel Industry Suffers Due to Electricity & Gas Shortages
The steel industry in Iran is facing a tumultuous time, with reports indicating that the country is struggling to maintain its position as one of the top steel producers in the world. Despite ambitious plans to become the seventh largest steel producer globally, the industry has been grappling with severe shortages of electricity and gas, both essential for running the plants.
Businessman Mr. Zakaria Nayebi, who is active in the steel industry, noted that the shortage of electricity and gas led to a decrease in steel ingot and direct reduced iron production for three months. The winter season in Iran further worsened the situation, with offices and schools being shut down for days due to a natural gas shortage.
Iranian industrialist Mr. Reza Shahrestani predicted that the gas and electricity shortage would lead to a two-million-ton decrease in steel production.
The steel industry requires 40 million cubic meters of gas daily, and the current consumption has reached only 15 million cubic meters per day, with almost 50% of the electricity supply for industries being cut off.
The severe gas shortage has led to a shortage of electricity, as the current amount of natural gas does not meet the needs of power plants to produce electricity. As a result, the steel industry is facing a significant decline in production, which is likely to impact all industries. The World Steel Association has removed Iran from the list of the ten largest steel producers globally, with Italy replacing Iran.