Iran's state grid operator, Tavanir, began a power rationing program for cement and steel plants in June 2026 (Khordad 1405), province by province, and the restriction is set to continue through the Iranian month of Mordad (roughly through late August), per its published schedule. At the same time, natural gas supply to cement plants has been cut entirely in several provinces, including Fars, Khuzestan, Bushehr, Sistan and Baluchestan, and Hormozgan, forcing those plants onto backup fuel oil (mazut) to keep running. The combined effect is a tighter domestic cement supply and continued price growth: by June 30, 2026 (9 Tir 1405), wholesale bags of Tehran and Saveh cement stood at about 253,000 toman, and Sufian cement at about 281,000 toman.
Background
Summer power rationing for energy-intensive industries is a recurring pattern in Iran: to get through peak summer demand, Tavanir routinely curtails industrial power allocations in favor of residential consumers. This year that restriction has been formalized for the cement and steel industries, with specific quotas set for each province and city. In parallel, as part of the same consumption-management push, several provinces have seen natural gas to cement plants cut entirely, pushing those producers onto costlier, more polluting mazut fuel. Domestic business press, including Tejarat News, has reported cement growing scarcer in some regional markets alongside these restrictions.
The numbers
| Item | Figure | As of |
|---|
| Tehran and Saveh bagged cement (50kg bag, wholesale) | About 253,000 toman | June 30, 2026 (9 Tir 1405) |
| Abyek bagged cement (wholesale) | About 255,000 toman | June 30, 2026 (9 Tir 1405) |
| Sufian bagged cement (wholesale) | About 281,000 toman | June 30, 2026 (9 Tir 1405) |
| Iran Mercantile Exchange cement hall trading | 884,523 tons (worth about 2,900 billion toman) | Week ending June 26, 2026 (5 Tir 1405) |
| Kish export hall cement offering | 191,000 tons (of a combined 279,921-ton offering) | June 29, 2026 (8 Tir 1405) |
Drivers
Two simultaneous policy decisions sit behind the tighter supply. First, Tavanir's power rationing program for cement and steel plants, which began in June and sets a separate quota for every province and city; Tavanir has framed it as part of managing summer peak demand and prioritizing residential subscribers. Second, the complete cutoff of gas supply to cement plants in Fars, Khuzestan, Bushehr, Sistan and Baluchestan, and Hormozgan provinces, which industry sources say has pushed those plants onto backup mazut fuel. Domestic business media have linked this combination directly to cement becoming scarcer and more expensive in some regional markets.
Outlook
Based on Tavanir's published schedule, power rationing for cement and steel plants is set to continue through the end of Mordad 1405 (roughly late August 2026), meaning pressure on cement supply will likely stay tied to the state of industrial power and gas at least through the summer. This is a read on the official schedule, not a price forecast, and the actual severity will depend on how high residential summer demand peaks and any government decisions to adjust the quotas.
What to watch
In the coming weeks, the volume and value of weekly cement offerings on the Iran Mercantile Exchange's physical hall (normally held on Wednesdays) and the Kish export hall will be a useful gauge of how much production restrictions are actually biting. Tavanir's provincial power rationing tables, and whether gas service is restored to cement plants in the provinces named above, are also worth watching this summer.
Disclaimer
This report is for informational and educational purposes only and does not constitute investment advice. All figures carry a specific as-of date and may have changed since; verify information against official, current sources before making any decision.
