The challenges of advancing the steel industry
The country’s steel industry, which has always been one of the basic pillars of our economy, has faced successive barriers in recent years that hinder growth and progress, such as power outages in summers, export…
The country’s steel industry, which has always been one of the basic pillars of our economy, has faced successive barriers in recent years that hinder growth and progress, such as power outages in summers, export shortages, The export of steel products has always acted as a barrier in the development and progress of this industry. In the end, these dams and successive challenges affect the price of iron, the price of rebar, the price of Tirahen, etc.
Shahram Alivand, Managing Director of Amirkabir Kashan Steel stated: In general, extensive efforts have been made in our steel industry and this industry is on the path of development, but some challenges and unprofessional determinations and the imposition of obstacles and barriers in this direction indicate which is not focused on balanced and sustainable development as it should be. The challenges that we are facing today are the result of insufficient attention to sustainable development and maintaining the health of the environment and preventing environmental pollution, supply of raw materials and the issue of energy and fuel costs in It is transportation.
In fact, it can be seen that the country’s steel industry has faced extensive challenges since 1400, and all these challenges are the result of not paying attention to the issue of development. In developed countries, they think of extensive reforms and measures before facing problems.
We are also required to pay attention to environmental, energy, transportation and raw material challenges in the steel industry before the challenges become obstacles, so that necessary measures can be taken to improve and provide the infrastructure.
The challenges of the steel industry are:
1- Rail transportation:
Transportation of raw materials in the world is through railway lines because this way of transportation is more economical than other ways. In our country, during the planning of the country’s steel comprehensive plan, the development of the entire railway lines by the year 1404 has been predicted to the extent of 25 thousand kilometers, but unfortunately, until the end of 2019, the performance of the railway lines of our country was 13 thousand 954 kilometers, which were arranged according to the plan. We are far behind schedule.
2- Water supply:
One of the challenges we are facing is the issue of water supply in the industry, and based on the investigations and studies that have been conducted in this field, if a steel production line is included in the construction plan, this production line should be located in the Persian Gulf and Oman Sea areas. to face less challenges in terms of water supply. If measures are not taken to provide water, a part of the production lines of the steel industry may be stopped. They will lose themselves.
3- supply of raw materials
Despite the efforts and measures taken in mining exploration, the country is still far from the intended goals, because the mining reserves have been extracted and are nearing the end, and more study and research is needed in the mining reserves that are also deeply dug. In order to achieve the goal of producing 55 million tons of steel, the necessary raw materials must be provided on time, and for this, extensive investment is needed in this field, and in order to achieve the goals of the 1404 horizon, we need to extract iron ore in the amount of 155 to 168 million tons. .
4-Equipping production lines with modern technology
In our country, unfortunately, old equipment and sometimes second-hand and third-hand devices are still used in the production lines, and in the end, we can say that from the beginning of the production cycle, from exploration and extraction to the end of the production of final products, it is necessary to use the most up-to-date equipment in the world. They consume less fuel, energy and electricity and pollute the environment less.
5- Pricing
In order to have a healthy economic cycle, pricing must be done rationally and the total cost of the producer and appropriate profit margin should be taken into account, but unfortunately, in recent years, we are faced with mandatory pricing that such decisions are like poison for our economy.
6- Energy supply
At present, more than 25% of the installed capacities of manufacturing companies are unused and the reason for this remaining unused is the lack of electricity, and it can be said that steel companies can build power plants to solve these problems to a large extent. .
7- Transportation cost
The transportation rate is a very important issue that if it is not balanced as it should be, then it may lead to the closure of the production units. In this context, Abazar Barari, the secretary of the Iran Steel Rollers Association, stated: The price of steel products is largely higher than the transportation price. It will be effective and if the cost of transportation increases, naturally, this price increase will be included in the cost of the product.