Several Iranian companies have set up a joint venture to build Iran's first graphite electrode manufacturing plant in light of the current shortage, Chilanonline, website of the Iranian Steel Producers Association said, citing Seyed Hossein Ahmadi, managing director of Khorasan Steel Complex Co.
"Some 200 million will be invested by Novin Electrode Company, a joint venture between Iranian state mines and metals holding company Imidro, Mobarakeh Steel Co and Khorasan for the production of graphite electrodes," he was quoted as saying Wednesday.
"We hope that with the improvements which happened after removal of the sanctions, the machinery will be supplied soon and the plant be launched within one or two years," he added, adding that the shortage of graphite electrodes has become a major challenge for the steel industry in Iran.
The Iranian steel industry is largely based on electric arc furnace steelmaking and concern about electrode supply has grown in recent weeks.
"It is a critical factor for the industry and increased the production cost," a steel industry supplier in Tehran told Platts Thursday.
But he said the shortage of graphite electrodes will not affect the country's exports.
"Small companies are more anxious about this situation because large producers usually have enough inventory of electrodes to deal with the current shortage within the next few months, and on the other hand the suppliers of electrode prioritise their older customers in these critical conditions," he said.
Iran sources electrodes mostly from India and China, but imports are under pressure now as a result of a shortage in the international market, he added.
