15% Decrease in Iran’s Steel Production During Summer
Statistics from the World Steel Association indicate that Iran’s steel production significantly declined this summer.
In recent years, Iran has faced an increasing electricity shortage during the summer, and the power supply to steel plants has been increasingly restricted each year.
The latest report from the World Steel Association shows that Iran’s steel production this summer decreased by 15% compared to the same season last year.
In August, the middle of summer, when the country’s electricity deficit reached an unprecedented 20,000 megawatts, Iran’s steel production fell by about 10% compared to the same month last year, around 33% compared to August 2022, and about 44% compared to the same month in 2021.
Additionally, last month, Iran produced only 14 million tons of steel, whereas in the spring or autumn, when steel plants are not facing power and gas cuts, Iran produces twice this amount.
In terms of global steel prices, Iran’s crude steel manufacturing plants incurred an opportunity cost of approximately 15 billion dollars this summer due to partial operations and production below capacity.