Iran’s steel production fell by 15 percent in October, following smaller declines earlier in the year resulting from lack of electricity, after years of growth.

The World Steel Association in its latest report showed Iran as the tenth largest producer in the world after Brazil but with a large drop, which dragged down overall steel production in the Middle East.

Iran has been suffering from an acute electricity shortage in recent years as its natural gas production, feeding power plants, fails to keep up with domestic demand. Lack of investments and technology resulting from years of various sanctions have gradually reduced output in operating gas fields.

Iran has been counting on exporting more steel and other metals, including copper and iron ore to reduce dependance on oil exports. The drop in steel production would hurt the government’s foreign currency revenues at a time when US sanctions have reduced its oil export income.

Iran produced around 29 million tons of steel in 2020, which was 16 percent higher than in 2018 and 141 percent more than a decade earlier.

Iran’s Steel Producers’ Association has also confirmed that production of metals fell between 3-13 percent since March 21, the beginning of the current Iranian year.