BAKU, Azerbaijan, August 7. The electricity shortage in Iran is seriously affecting the steel sector and steel production, the member of the Iranian Steel Manufacturers Association, Reza Shahrestani, told local media, Trend reports.
According to him, in previous years, power outages due to electricity shortages during the summer season began on June 5. However, this year, power outages due to electricity shortages began on May 5. This could lead to a serious decline in production in the Iranian steel sector.
Shahrestani noted that further restrictions on electricity supply to the country's industrial sectors have further exacerbated the production situation.
"The production capacity of Iran's steel sector is more than 50 million tons per year. However, the production situation has already gone beyond economically viable levels. Thus, the costs associated with the decline in production are rising, and Iran will no longer be able to actively export steel. As this problem worsens, Iran will become a steel importer in the coming years," he said.
The official noted that last year (from March 20, 2024, through March 20, 2025), steel production in Iran amounted to about 30 million tons. Compared to the previous year (from March 21, 2023, through March 19, 2024), steel production decreased by 2 million tons.
Meanwhile, on August 5, electricity consumption in Iran totaled 77,300 megawatts.