Iran projects cement output to drop significantly amid energy restrictions
Date
12/17/2024 4:32:56 AM
(MENAFN) Cement production in Iran is projected to drop significantly this year, with estimates predicting a decrease to 70 million tons, down from 76 million tons last year. The decline is largely attributed to ongoing electricity and gas supply constraints, which have impacted the cement sector. Ali Akbar Alvandian, Secretary of the Cement industry Employers’ Association, addressed these challenges in a press conference on Sunday, highlighting that energy shortages have affected the industry earlier than in previous years. Typically, gas supply restrictions to cement plants begin in late November, but this year, limitations started on October 7. Similarly, electricity shortages, which are usually observed in February, have already disrupted operations in several cement factories.
Alvandian also pointed out that in addition to the gas and electricity shortages, cement plants are struggling to secure alternative fuels, such as mazut, which is typically used to supplement energy needs. He explained that transportation constraints are exacerbating the problem, as power plants are prioritized for fuel supply, leaving cement factories to receive mazut supplies only after the needs of power plants are met. These compounding issues have severely hindered the cement industry’s ability to maintain production levels.
The official provided further details on the industry's performance in the first eight months of the current Iranian calendar year (March 20-November 21), reporting that clinker production had reached 50 million tons, a 3-million-ton decline compared to the same period last year. Cement output during the same timeframe stood at 48 million tons, marking a 400,000-ton decrease from the previous year. These declines reflect the direct impact of energy shortages on the cement production process.
Looking ahead, Alvandian forecasted that Iran’s cement production for the year would ultimately total 70 million tons, a significant drop from last year’s output of 76 million tons. The continuing energy limitations are expected to keep production levels lower, further straining the cement sector and potentially impacting construction and infrastructure projects that rely on cement as a key material.
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