TEHRAN – Iran produces around 560,000 tons of aluminum ingots annually, below its installed capacity of more than 650,000 tons, due to recurring shortages of electricity and natural gas, the head of the Iranian Aluminum Industries Syndicate said.

Houshang Goodarzi told state media that the country’s aluminum industry begins with alumina production at the Jajarm complex and continues through four main smelting units, with output feeding a wide range of downstream industries.

According to Goodarzi, Iran requires about 1.3 million tons of alumina to meet its full ingot production capacity. Domestic supply provides only 250,000 tons, with the remainder imported, often under foreign exchange constraints. For every kilogram of aluminum ingot, roughly twice as much alumina powder is needed, he said.

Of the 560,000 tons of aluminum ingots produced annually, about 450,000 tons could serve domestic demand. But with alumina imports requiring hard currency, large volumes are exported to finance raw material purchases. In practice, around 300,000 tons are supplied to the domestic market, while the rest is shipped abroad to secure feedstock.

Downstream industries—including foil, sheets, coated products, automotive parts, wires and cables—are facing recession, largely due to power outages and frequent production halts. “The upstream sector continues production according to plan and supplies materials, but consumption is down, and in recent weeks much of the inventory in the commodities exchange has gone unsold,” Goodarzi noted.

He added that restrictions on customs clearance and central bank foreign exchange allocation have further strained the sector. While some producers resort to barter or alternative currency arrangements, rising exchange rates continue to drive up costs.

Aluminum production, highly dependent on stable electricity supply, is disrupted when power or gas is cut, forcing smelters to idle expensive furnaces. Goodarzi expressed hope that power shortages would ease by late summer, though gas supply constraints could emerge as a new challenge in winter.

EF/