Iran’s steel production in the first eight months of the current Persian Year (21 Mar-22 Nov’21) registered a sharp fall compared to the corresponding period last year (CPLY), according to recent data released by the Iranian Steel Producers Association (ISPA).
- The country produced 18.53 million tonnes (mn t) of semi-finished steel in Mar-Nov’21, down 11% y-o-y. Billets and blooms accounted for 10.96 mn t out of the total semi-finished output, a significant decline of 15% y-o-y while slabs production was down marginally by 2% y-o-y to 7.57 mn t.
- The total production of finished steel stood at 15.43 mn t in the period under review, lower by 7% y-o-y as against 16.51 mn t in CPLY.
- Production of long and flat steel stood at 7.39 mn t and 8.05 mn t, down by 3% and 10%, respectively in this period.
- Direct reduced iron (DRI) production stood at 20.07 mn t in Mar-Nov’21, down 3% y-o-y compared to 20.7 mn t in CPLY.
Mills face natural gas curtailment issues
Iranian steel mills are presently struggling with governmental restrictions on natural gas usage, which has already started impacting steel production volumes.
The National Iranian Gas Company recently notified the steel mills about restrictions on natural gas supply during the ongoing winter season.
Iranian steel mills have been under pressure since the last few months. Earlier, in summer too, mills were forced to lower electricity consumption amidst widespread blackouts in the scorching heat.
Outlook
Iranian billets and slab export prices may get impacted due to lower production volumes if the ongoing gas supply crisis sustains further.
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