Water crisis affects listed companies

Water shortages have caused worry for companies in the Bourse. Almost half of the companies in the Bourse are located in the center of the country which is faced with severe water shortages. During the war and due to security concerns, many businesses were built in the central part of Iran rather than the southern coast which has access to water e.g. Mobarakeh Steel Company and Esfahan Steel Company.

With water shortages becoming more severe, these industries are forced to transfer water from the south of the country which will increase their costs. However, both Mobarakeh Steel Company and Esfahan Steel Company believe that this increased cost is insignificant and will not affect share prices. Mobarakeh Steel Company has announced that it has reduced its harvest from Zayanderud by 15% and by completing the wastewater collection project in neighboring cities which will become operational in 6 months, 400 million cubic meters of water will be injected into its industrial complex.