Iran cement industry faces severe electricity and gas shortages

The Iranian cement industry is facing severe energy shortages and rising costs, according to Ali Akbar Alavandian, Secretary of the Cement Employers Association. Electricity supply to the sector has been restricted to 400 megawatts per day, a significant drop from the 650 megawatts provided during peak hours last year. This reduction has already resulted in a decline of approximately 3.5 million tons in clinker production compared to the same period last year.

Producers are also protesting the Ministry of Energy’s method for calculating electricity transit fees. Currently, fees are charged based on contracted demand capacity rather than the actual electricity delivered to the units. Industry representatives argue that costs should be calculated based on the real quota available in the network, citing existing legal precedents in other sectors.

In addition to electricity constraints, the industry is struggling with a critical gas shortage. While the cement industry requires 28 million cubic meters of gas daily, it is currently receiving less than five million cubic meters. This deficit is forcing factories to rely on alternative fuels, such as mazut, to maintain operations.