Mobarakeh Steel exemplifies these pressures, having experienced an 835% increase in energy costs over five years, with its production costs jumping from 410 trillion IRR in 2020 to 1,800 trillion IRR in 2024–2025.
A mismatch between selling prices and inflation, domestic recession, rising financing costs, and electricity and gas restrictions have pushed steelmakers toward shrinking profit margins and serious operational challenges.
According to the Iranian Steel Producers Association, the steel industry has faced a $5.5 billion loss in 2024–2025 due to the country’s energy imbalance.
The association states that over the past four years, the total damage from energy shortages in the industry has exceeded $14 billion, marking a serious warning sign for the sustainability of Iran’s steel production and exports.
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