Masoud Abka, former CEO of Isfahan Steel, at the 28th International Steel Symposium and Exhibition 1405 held last week in Isfahan, warned about the delay in infrastructure development in the steel industry. Abka emphasized the necessity of balanced infrastructure development and reforming energy policies, examining the problems caused by energy imbalance on steel production and the competitiveness of this industry.
Balanced Development of the Steel Industry
In this meeting, Abka referred to the projected goals for producing 55 million tons of steel in the country, stating: "The development of the steel industry should have been carried out in a balanced manner, and alongside capacity building in the steel chain, issues such as raw material supply, energy, export markets, and technology should also have been considered." He added that estimates from the comprehensive steel plan indicate that the entire steel chain in the country requires about 5% of gas capacity, 8% of electricity capacity, and approximately 0.2% of the country's water consumption.
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Actual Production and Energy Challenges
Abka stated that the nominal capacity of 55 million tons of steel has been created in the country, clarifying: "Actual production is about 32 million tons, and nearly 40% of the created capacity remains unused." He continued that the estimates presented in this meeting indicate that part of the unused capacity in the steel industry is due to energy shortages. Abka also referred to the production experience in the year 1404, saying: "In some months, steel production reached about 3.3 million tons, which, if continued, indicated the possibility of achieving an annual production of about 40 million tons; however, energy limitations prevented the realization of potential production capacity."
The Necessity of Addressing Energy Bottlenecks
Abka criticized the delay in infrastructure development compared to capacity building in the steel industry, emphasizing that under current conditions, instead of creating new capacities, addressing existing bottlenecks, especially in the energy sector, should be prioritized. He also considered the investment of steelmakers in gas fields and power plants as a sign of companies' efforts to maintain production continuity and stated: "The sustainable provision of infrastructure is one of the main responsibilities of the government and the responsible agencies."
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