Gas and electricity are widely recognized as the primary energy sources utilized in the steel industry. However, their limitations often result in challenges and complications during steel production. It will also affect the prices and export figures of steel products.
It was reported that electricity consumption in the first three months of the steel industry this year increased by 7.5% when compared to the previous year. This indicates an increase in production. According to the CEO of Iran Electricity Grid Management Company, the Minister of Energy has agreed to waive penalties or restrictions for industrial electricity consumers who surpass their contracted electricity consumption. As a result, these consumers will have to consume electricity without limitations between the hours of 24:00 and 08:00 at night
The steel products that were significantly impacted by the gas restriction included sponge iron, recovery and production units of furnaces, and billet production. In the steel industry, a substantial portion of gas consumption, accounting for over 75%, is dedicated to sponge iron production. On the other hand, billet production relies heavily on electricity, with an electricity consumption rate exceeding 70%. This indicates that a significant portion of the energy input for billet production is derived from electricity. The high reliance on gas and electricity in these respective processes underscores the critical role these energy sources
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