The Khuzestan Steel Table, as a consultative body, is striving to create the necessary conditions for maintaining production and employment in the province by continuously examining existing issues and challenges. Mehram Ravanbakhsh, one of the officials of this table, emphasized the necessity of convergence among steel companies and stated that this table should become a platform for anticipating upcoming challenges.
War Damages and Reconstruction Efforts
Ravanbakhsh also referred to the damages inflicted on some companies during the recent war and reported the special attention of the Ministry of Industry, Mine and Trade to the affected units. He mentioned the efforts of Khuzestan Steel to reconstruct a significant portion of the damages and prepare for the challenges of the second half of the year.
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Main Challenges of the Steel Industry
Amir Ebrahimi, CEO of Khuzestan Steel, also pointed out the major challenges facing this industry. He identified energy limitation as one of the serious warnings for this industry and emphasized that the share of energy in the cost of producing billets has increased from about 4% in previous years to around 25%. Ebrahimi also announced that Khuzestan Steel has lost 3.5 million tons, equivalent to one year of production, due to energy limitations from 2021 to 2025.
Mahmoud Landi, CEO of Oxin Steel Khuzestan, proposed the integration of the steel supply chain as a solution to reduce costs and maintain added value in the province, calling for the formation of a Khuzestan Steel Consortium. He emphasized that the supply of raw materials needed by Khuzestan steel companies should be approached from a national perspective. Mehrdad Baladi-Mousavi, Deputy Operations Manager of Khuzestan Regional Electric Company, also stressed the development of dedicated and shared power plants.
Mojtaba Zafari, Director General of Cooperatives, Labor and Social Welfare of Khuzestan, also reported on efforts to prevent a widespread wave of layoffs in the province and announced that Khuzestan Steel has been praised for maintaining employment. Javad Khodabakhshi, CEO of Ahvaz Rolling and Pipe, called for the establishment of a mechanism for the direct supply of raw materials from Khuzestan Steel.
Finally, all the managers present at this table referred to energy imbalances, raw material supply, transportation costs, and access to banking credits as the main challenges of the steel industry and called for government support in tax areas. The continuation of this table and the establishment of a cohesive mechanism for addressing the issues of the steel chain can help maintain production and protect employment.
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