Trading activity in the Iranian export steel billet market has diminished in mid-July with local producers being forced to cut their output due to an electricity shortage in in the country, Fastmarkets heard on Wednesday July 14.
Tehran and Iran's other major cities have experienced frequent power outages since May, and authorities say that these may continue until late July.
In order to continue to supply the country with electricity, Iran Power Generation, Distribution & Transmission (Tavanir) asked that
steel and cement production units be ordered to reduce their consumption starting on July 6.
"Iranian mills have been instructed by the government to cut electricity consumption by a minimum of 50% in July due to power outages and a shortage of electricity in the country, and the extremely hot summer," one trader source said.
The Iranian steel industry is heavily dependent on electricity because most mills are based on electric-arc furnaces (EAFs).
According to Worldsteel, in 2020...