Key Iran mills' steel output drops in Aug'21 on power outages

Iran's key steel mills have reported a decline in steel output in Aug'21, according to the latest data available to SteelMint. Iran has been facing an unprecedented power crisis since the second week of Jul'21 in this scorching summer. However, some of the curbs brought on by the iron and steel mills have been eased.

As per the new eased norms, the steel industry can carry on production on Mondays and Tuesdays from midnight till 8 am the next day operating at 50% of their total electricity consumption needs. However, for the balance period of the day and up to midnight, the mills can operate using only 10% of the power they actually require. From Wednesdays to Sundays, the mills can continue with their production at all hours of the day and night but only drawing 50% of the total power they require from the grid.

• By producing 2.35 million tonnes (mn t) of crude steel during the first five months of the current Iranian year (started March 21, 2021), Mobarakeh Steel Company topped the list of steel producers. However, the mill's output was down by 13.56%, as against 2.75 mn t in the corresponding period last year (CPLY). Located in south-western Isfahan, Mobarakeh Steel Company is the biggest steel producer across Iran and the entire Middle East.
  
  
• MSC is followed by Khuzestan Steel Company with 1.22 mn t of production during the first five months. The volume indicates a decline of 26.4%, when compared to 1.65 mn t in the same period last year.
  
  
• Esfahan Steel Company comes next with 0.88 mn t of crude steel during the first five months, registering a decline of 7% y-o-y. The company's crude steel production during the same period of the last Iranian year was at 0.95 mn t.
  
  
• South Kaveh Steel Company, with 0.43 mn t (down 15% y-o-y), Chadormalu with 0.39 mn t and Arfa with production of 0.28 mn t (down 16% y-o-y) were the other main producers of crude steel. Chadormalu's production remained unchanged during the first five months of the current Iranian year.
  
  

~ Inputs from Planner