BAKU, Azerbaijan, January 15. Restrictions on gas and electricity at Iran's steel plant are estimated to result in a drop in the country's steel production of about 2 million tons, a member of the board of directors of the Iranian Steel Producers Association (ISPA), Reza Shahristani told ILNA, Trend reports.
According to Shahristani, Iran's steel industry's daily gas consumption is 40 million cubic meters but currently, only 15 million cubic meters of gas are supplied to steel plants.
He added that the gas supplied in the mentioned volume provides only 50 percent of the companies' needs for the production of sponge iron.
The official also said that gas supply to some facilities (such as steel and petrochemical plants) was reduced by 50 percent in order to fully satisfy the country's electricity needs. This resulted in the reduction of electricity supplied to steel plants.
Shahristani noted that the gas restriction problem is expected to further increase in the next Iranian year (March 21, 2023 through March 19, 2024). If this problem persists, it will have a serious negative impact on the entire industry of the country.
The offcial stressed that the decrease in steel production in Iran will not affect the export process. Because pre-manufactured products in the steel industry are exported.
In recent days, gas consumption in residential buildings and commercial facilities in Iran is around 700 million cubic meters per day. This resulted in restriction of gas supply to some facilities in the country.
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