Posted on 22 Jul 2024
Iranian billet buyers have been notified by mills that their previously signed contracts for early-August load-ready cargoes will be ready only by mid-September, meaning a 45-day delay, Kallanish notes.
Many of the electric arc furnace-route mills have been severely affected by power cuts this year. Last year, power supply was much better managed, with power available to mills on a rotating basis during the month. This year, however, mills in some states have shut down completely.
Esfahan Steel Company is the sole blast furnace mill in Iran and is therefore least affected by the electricity supply curtailment.
One trader says: “There are no new tenders, no availability of cargo. Producers are postponing deliveries by nearly 45 days, citing the force majeure clause in the contract [as a result of power cuts]."
For many years, governments in Iran have neglected to invest in electricity generation infrastructure, ignoring the increasing electricity needs of industry and households amid a fast-growing population. For this reason, some sectors, including the steel industry, have been subjected to summer power cuts since 2021.
Source:Kallanish
