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Iranian Steel Association Submits Emergency Production Plan to Government

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The Iranian Steel Producers Association (ISPA), in a letter to the Iranian government, presented a proposed plan to continue steel production in the event of a power shortage. According to the proposals, with the 2,000 MW allocation that the Department of Energy has pledged to the sector, the mills will be able to handle 40% of the production process using about 90% of the workforce.

According to Chilan Online, ISPA has prepared proposals with the understanding that in the event of a power outage, production will not be affected, which in turn can prevent the impact on the national economy, as well as help enterprises to fulfill their export obligations separately from meeting domestic demand.


Steel production in Iran, forecasts and metal prices

The proposals additionally take into account the technical limitations of production, as stopping the kilns can lead to huge costs for the factories, as well as market conditions by product category. The proposals also took into account the state of the factories and the economic state of each province and divided the companies into two categories A and B so that production was distributed evenly and there were no problems with meeting domestic demand.

Domestic demand for steel was the backbone of the proposed ISPA program. In addition, higher power distribution was required in products requiring more power.

It is worth noting that ISPA did not provide a plan for the steel industry as a whole, but a detailed production schedule for each steel plant in case of power outages.