Masoud Samiei Nejad, the CEO of IMIDRO, warned about the energy imbalance in Iranian industries and announced that this issue has become one of the serious challenges in steel production. He pointed out that the development of steel production capacity in the country has occurred without the development of corresponding energy and logistics infrastructure, emphasizing that the limitations in electricity and gas supply have now become the main obstacles to production.
Continuing Energy Imbalance and Its Consequences
Samiei Nejad emphasized that in recent years, many industrial and mining units have been forced to use alternative fuels due to energy limitations, and this situation will continue this year as well. He added that the shortage of gas and electricity in the second half of the year, especially for units that consume gas as feedstock, could be detrimental. According to him, these conditions could lead to a decrease in steel production and exports.
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Industry Demands for Managing Limitations
The CEO of IMIDRO also warned about the necessity of managing energy supply limitations during the cold season and said: "Policies have been communicated to large industries to plan for overhauls and repairs of factories in winter." He added that under current conditions, the mining sector and mineral industries, especially the steel chain, will face increased pressure on production.
Samiei Nejad further referred to a reduction of more than 10 million tons of steel production last year due to energy limitations and said: "This situation has also led to a decrease in the country's exports." He stated that if the energy imbalance continues, meeting market needs through imports will be likely, while Iran has previously been one of the exporters of steel sheets in the region.
Finally, Samiei Nejad called for more attention from policymakers to manage electricity and gas supply and said: "The continuation of the imbalance will affect not only production but also exports and the downstream industrial chain." These concerns arise while energy costs have also exerted significant pressure on the production cost price.
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