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Semi-finished steel output hit by power supply deficits
The Iranian Steel Producers Association (ISPA) said that production of semi-finished steel in the country had dropped by 5.4% year on year in the five months to August 21, according to Press TV.
The ISPA said the fall in production had amounted to 0.7 million metric tons (mt) in volume terms which is worth $300 million.
Semi-finished steel or mild steel is used to make long steel products, which are then used mainly in construction of buildings, roads, bridges and other infrastructure.
The ISPA data showed that Iran’s production of rebar (reinforcing bar) had dropped by 9.2% in the five months to late August compared to the same period last year while angle steel and U-steel output had dropped by 13.6% over the same period.
Steel ingot production in Iran fell by 7.9% year on year in the five months to late August, the figures showed.
The ISPA blamed heavier electricity supply restrictions this summer for the fall in Iran’s semi-finished steel production.
The Iranian government was forced to cut electricity supplies to industries, including steel manufacturers, in July and August amid an unprecedented heat wave in the country that pushed demands for cooling to all-time records.
Iran is one of the 10 largest steel producers in the world. The country has reported a steady increase in production and exports of steel in recent years amid a war between Ukraine and Russia that has affected regional supplies.