An Analysis of prices of energy carriers on the steel industry in Iran

Subject Areas : Financial Economics

Mohammad Ali Khatib ¹ , Roya Seifipour ² , Saeid Rahimi ³

1 - Islamic Azad University Central TehranBranch
2 - Islamic Azad University Central Tehran Branch
3 - MSc in Energy Economics

Received: 2015-06-10 Accepted : 2015-06-10 Published : 2009-12-22

Keywords: Cost of Steel, Energy Carriers, Energy Subsidies,

Abstract :

Improved prices of energy carriers in the country’s economy especially the industrial sector have a high sensitivity. Steel industry, including energy-intensive industries, capital-intensive and requires high technology that high share of energy production (about %8), causing the increasing prices of energy carriers, affect production cost and product sales. Therefore, due to the late and former communications industry with other industries, price changes on other economic sectors and industrial steel works will also be important. The results show that the prices of energy carriers with direct effects on the cost of steel industry. It is being provided if none price package as reform process, improving production technologies and improving energy use patterns is not applied simultaneously with price reform policy, Accumulation due to cumulative effects of increased prices of energy carriers, there is the possibility of bankruptcy and closure of industrial units.