15% Decrease in Iran’s Steel Production During Summer
Statistics from the World Steel Association indicate that Iran’s steel production has significantly decreased this summer.
Over the past few years, Iran has faced increasing electricity shortages during the summer, leading to more restricted power delivery to steel units each year.
The latest report from the World Steel Association shows that Iran’s steel production dropped by 15% this summer compared to the same season last year.
In August, mid-summer, when the country’s electricity shortage reached an unprecedented 20,000 megawatts, Iran’s steel production fell by about 10% compared to the same month last year, about 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 spring or autumn, when steel units are not facing power and gas outages, Iran produces twice this amount.
In terms of global steel prices, only Iran’s crude steel manufacturing plants have incurred an opportunity cost of about $15 billion this summer due to partial operations and production below capacity.
