Export billet prices from Iran surge on limited availability, improving demand in China

Iranian steel billet export prices continued to rise in the second half of July on improving demand from China, but availability is being constrained by a slowdown in steel production caused by electricity shortages, sources told Fastmarkets on Wednesday July 21.

Extreme heat and drought conditions, combined with industrial growth and high energy-use cryptocurrency mining were cited as the reasons behind a wave of power outages in the country since the start of May.
To maintain electricity supplies, state provider Iran Power Generation, Distribution & Transmission (Tavanir) called on users to reduce their consumption of electricity from July 6.
The reduced electricity supplies to steel mills, which are mainly equipped with electric-arc furnaces (EAFs), has resulted in lower steel output.

“Our production now is only 1,000-2,000 tonnes...


Vlada Novokreshchenova

July 21, 2021

15:02 GMT