Iran's CB Reviews Changes in Export Price Index

EghtesadOnline: The export price index stood at 723.5 in the tenth month of the current fiscal year (Dec. 22, 2018-Jan. 20), registering a 3.4% decrease compared with the preceding month and 140.7% rise against the same month of last year, the Central Bank of Iran’s latest data show.

News ID: ۷۴۶۷۸۴

26 February 2019

The index saw a rise of 160.1% over the 10-month period and an increase of 140.1% over the 12-month period leading to Jan. 20 compared with the corresponding periods of last year.

EPI is primarily influenced by two factors: foreign exchange rates and global commodity prices. The index is calculated for the prices of one or a basket of commodities in international trading, using FOB export prices.

EPI for the “Petrochemicals” group had the sharpest decline of 5.2% and that of “Land Vehicles and Transport Equipment” had the highest increase of 2.7% compared with the month before, according to Financial Tribune.

The highest year-on-year increase of EPI was registered for “Wood and Wood Products” with a 163.9% rise, followed by “Animal Skin, Leather and Leather Products” with 155.9%.

The slowest year-on-year rise in EPI was registered for “Fats, Animal and Vegetable Oils” with 84.9%.

In the tenth month of the year, “Plant-Based Products” EPI increased by 0.8% compared with the preceding month, thanks to the rise in the export prices of pistachios (3%), dates (4%) and raisins (1.6%).

During the month under review, almonds’ EPI declined by 11.4%, tomatoes by 1.1% and saffron by 0.4% month-on-month. The group’s EPI increased 146.3% year-on-year.

The decline in EPI of liquefied propane by 7.4%, liquefied butane 7.2%, industrial oil 10.4%, paraffin wax 15.2%, cement 1.9%, engine oil 10.1% and copper and bitumen concentrates each by 1.1% resulted in a 6.4% month-on-month decrease in EPI of “Mineral Products” group. Yet, EPI of “Mineral Products” group jumped by 144.9% YOY.

“Chemicals and Chemical Industry’s Related Products” saw a decrease of 3.9% in their export price index that is mainly thanks to the decline in the prices of ammonia by 12.5%, urea fertilizer 4%, monoethylene glycol 6.7%, detergents 14.9%, methanol and styrene each 1.1%, molybdenum dioxide 6.9% and dodecylbenzene by 1.1%. The group’s EPI increased by 153.9% YOY.

During the tenth month of the Iranian year, the EPI measured for “Plastics, Natural Rubber and Their Products” dropped by 4.8% compared with the preceding month. The decline in the prices of high-density polyethylene by 11.7%, low-density polyethylene 4.4%, rubber motorcycle seat cover 16.1% and plastic tube 1.1% is to blame for the fall in EPI of “Plastics, Natural Rubber and Their Products” compared with the previous month. The group’s EPI increased 118.9% YOY.

The downturn in export prices of hand-woven wool rug by 7% led to the drop in EPI of “Textiles” group by 4.3% in the tenth fiscal month. The YOY EPI of this group grew by 89.1% compared with the same month of last year.

During the month ending Jan. 20, the export price index of “Common Metals and Their Products” decreased by 1.3% MOM, which is largely thanks to the decline in EPI of zinc ingot by 5.4%, hot rolled coils 1.1%, ferromolybdenum 8.9%, beam 3.7% and rebar by 16.1%. The group’s EPI climbed by 138.7% compared with the same month of last year.

IRICA's Latest Export Data

According to figures released by the Islamic Republic of Iran Customs Administration, non-oil exports during the fiscal month ending Jan. 20 amounted to 7.93 million tons worth $2.99 billion, indicating a decrease of 25.2% in weight and 22.2% in value compared with the similar month of last year.

Overall exports, excluding crude oil, mazut, kerosene and suitcase trade, hit 94.87 million tons worth $36.35 billion during the 10 months ending Jan. 20, indicating a 2.21% increase in value YOY.

China reclaimed its place as Iran’s top non-oil export market from Iraq after three months and cemented its position as Iran’s main source of imports.

Iran’s exports to China during the 10 months reached $7.52 billion to account for 20.7% of the total value of Iran’s exports. Exports to China increased by 5.24% compared with the same period of last year.

After China, Iran’s top trading partners in terms of export, during the 10-month period were Iraq, the UAE, Afghanistan and Turkey.

Iraq bought $7.51 billion worth of non-oil goods from Iran during the 10 months, accounting for 20.67% of the total value of Iran’s exports.

Exports to the UAE stood at $5.31 billion or 14.62% of Iran’s overall non-oil exports. Exports to Afghanistan and Turkey hovered around $2.53 billion and $2.02 billion, respectively.

Ten-month exports to Afghanistan accounted for 6.97% of Iran’s total non-oil exports and those of Turkey constituted 5.57% of Iran’s overall non-oil exports.

By “non-oil”, IRICA refers to all commodities, except crude oil. Therefore, oil-driven products and byproducts as well as petrochemical products are still categorized as non-oil. IRICA categorizes non-oil exports into three groups of petrochemicals, gas condensates and “Other Products”.

Petrochemicals accounted for 33.92% of Iran’s total exports, gas condensates group 8.4% and exports of non-petroleum based products, including agricultural, industrial and mining products, as well as carpets, that are classified within “Other Products” constituted 57.68% of Iran’s overall exports.

Gas condensates group included the export of gas condensates worth $3.05 billion (8.4% of total exports), liquefied natural gas worth $1.81 billion (4.99% of overall exports), liquefied propane worth $1.48 billion (4.08% of total non-oil exports), methanol worth $1.22 billion (3.38% of total exports) and other light oil and products, except for gasoline worth $1.22 billion (3.36% of overall exports).