Iranian steel mills have informed buyers that previously signed contracts for billet shipments scheduled for early August will now be delayed by 45 days, pushing deliveries to mid-September, according to industry publication Kallanish.
The delays are attributed to severe power cuts impacting electric arc furnace-route mills in Iran this year. Unlike last year's managed power rationing, some mills have even faced complete shutdowns. Esfahan Steel Company, the sole blast furnace mill in the country, is less affected by the electricity shortages.
"There are no new tenders, no cargo availability," said a trader. "Producers are citing force majeure due to power cuts and postponing deliveries by nearly 45 days."
Years of neglecting investments in electricity generation infrastructure have left Iran struggling to meet the growing demand from industries and households. This has resulted in summer power cuts impacting various sectors, including steel production, since 2021.
