Closure of steel production due to electricity restrictions

According to Energy Press, the Iranian Steel Manufacturers Association, in a letter to the Ministry of Energy, while criticizing the non-implementation of Fimabin’s agreements regarding the consideration of the expert opinions of this association in applying electrical restrictions to steelmakers, made three proposals in this regard.

At the end of this letter, the Steel Association stated: referring to the agreements of the board meeting dated 03/06/1403 with His Excellency regarding the consideration of the expert opinions of this association in the application of electrical restrictions of steelmakers and also the complete delivery of electricity produced by the power plants built by the factories Steel and bilateral contracts remind us that not only none of the above-mentioned agreements have been implemented, but the electricity restrictions have been applied earlier and more intensively this year, so that from the 3,800 megawatt hours of electricity agreed for the steel industry in June, less than 70% of it has been realized (a limit of about 55% compared to normal consumption) and in July, even 50% of the 2400 megawatt hours of the program has not been operationalized. (limitation of about 75% compared to normal consumption)

This is despite the fact that since July 10, due to severe electricity restrictions, the country’s steel production has almost stopped, which will not only cause irreparable damage to the country’s production and national economy, but also disrupt the fulfillment of obligations of steelmakers in the domestic and international markets. Iran’s reputation in the world’s steel industry will be damaged. In addition, due to the lack of production and sales, the challenge of lack of liquidity of the steel chain factories has intensified and will cause numerous banking and financial legal issues.