Iran Non-Oil Export's Biggest Growth Boosters, Laggards (Mar-Oct 2018)

EghtesadOnline: An analysis of the Islamic Republic of Iran Customs Administration's data by Tehran Chamber of Commerce, Industries, Mines and Agriculture has sorted Iran's export destinations based on the level of their impact on the country's export growth in the first seven months of the current fiscal year (March 21-Oct. 22).

News ID: ۷۸۴۳۲۱

13 November 2018

Non-oil exports, excluding crude oil, mazut, kerosene and suitcase trade, hit 67.36 million tons worth $27.22 billion during the period, registering a more than 13% growth in value year-on-year, IRICA reported.

Iraq gave the biggest boost to export growth by more than 8% while the growth was most negatively affected by South Korea with 7%

Of the top 100 export destinations, 20 countries proved to be the main contributors to Iran's export growth. Non-oil exports to these countries totaled 54.3 million tons worth $21.4 billion, indicating a share of nearly 81% in weight and 78% in value of country’s overall exports, Financial Tribune reported.

Iraq bought $5.73 billion worth of Iranian non-oil goods during the period to give the biggest boost to export growth by more than 8%.

In fact, Iraq overtook China as the main non-oil export market for Iran during the period. Iran’s exports to Iraq surged by 55%, accounting for 21% of the total value of Iran’s exports.

A total of $4.63 billion worth of goods were exported to the UAE, which shows the Arab country had a 5% share of Iran’s export growth.

China bought $5.37 billion worth of non-oil products from Iran to claim a more than 2% share in export growth.

A 1.5% growth in Iran’s exports was on account of Afghanistan since the neighboring country imported $1.87 billion worth of non-oil goods from Iran.

Pakistan ranked fifth with more than a 1% share. It bought $688 million worth of non-oil goods from Iran during the seven months.

Thailand and Oman accounted for close to 1% of Iran’s export growth each. Indonesia, Egypt, Azerbaijan, Georgia, Qatar, Kuwait, Malaysia, Uzbekistan, Armenia, Russia, Myanmar, Italy and Tunisia had less than a 0.5% share each in Iran's export growth.

Tehran's chamber of commerce also named 20 countries as the biggest laggards that pulled down Iran's export growth during the seven months to Oct. 22.

Iran’s exports to these countries stood at 9.9 million tons worth $4.3 billion to register a share of nearly 14.8% in weight and 15.8% in value of the Islamic Republic's overall exports.

Export Destinations With Biggest Positive Effect on Non-Oil Export Growth (March 21-Oct. 22)

Weight

(Thousand Tons)

Value

(million USD)

Weight

Share (%)

Value

Share (%)

Weight

Change (%)

Value

Change (%)

Iraq | 12,848 | 5,730 | 19.09 | 21.07 | 65.29 | 54.8
The UAE | 10,215 | 4,637 | 15.18 | 17.05 | -0.39 | 32.51
China | 16,593 | 5,379 | 24.66 | 19.78 | -13.69 | 10.74
Afghanistan | 3,523 | 1,871 | 5.23 | 6.88 | 6.89 | 23.56
Pakistan | 1,439 | 688 | 2.14 | 2.53 | 30.68 | 57.98
Thailand | 1,116 | 528 | 1.66 | 1.94 | 33.3 | 66.13
Oman | 1,429 | 533 | 2.12 | 1.96 | 18.32 | 54.24
Indonesia | 1,033 | 403 | 1.53 | 1.48 | 10.31 | 43.71
Egypt | 428 | 192 | 0.64 | 0.71 | 25.9 | 99.35
Azerbaijan | 434 | 225 | 0.64 | 0.83 | 88.12 | 54.67
Qatar | 859 | 161 | 1.28 | 0.59 | -11.23 | 44.02
Georgia | 305 | 96 | 0.45 | 0.35 | 73.88 | 81.36
Kuwait | 2,106 | 163 | 3.13 | 0.6 | 60.09 | 32.73
Malaysia | 497 | 199 | 0.74 | 0.73 | 14.39 | 24.66
Uzbekistan | 308 | 81 | 0.46 | 0.30 | 648.69 | 59.16
Armenia | 300 | 89 | 0.45 | 0.33 | 74.61 | 38.87
Russia | 238 | 138 | 0.35 | 0.51 | -1.97 | 17.70
Myanmar | 177 | 54 | 0.26 | 0.20 | 31.55 | 53.81
Italy | 404 | 204 | 0.60 | 0.75 | 18.90 | 8.38

Iran’s exports growth was most negatively affected by South Korea. The East Asian country accounted for more than 3% of Iran’s overall exports, yet it drove down Iran’s export growth by 7%.

With a 3% share in Iran’s total exports, Turkey’s negative effect on Iran’s exports growth was by more than 1%. The negative impact of Tajikistan, India and Japan accounted for less than 1%, more than 8% and more than 0.5% of Iran’s overall non-oil exports respectively. The trio’s share of negative impact on Iran’s export growth during the seven-month period was about 0.5% each.

Exports to Switzerland, Syria, Togo, Belgium, Vietnam, Philippines, Taiwan, Jordan, the Netherlands, Mexico, Turkmenistan, the US, Hong Kong, Lebanon and Libya negatively affected exports growth by less than 0.5%.

As per IRICA's data, after Iraq, Iran’s top non-oil export destinations during the seven-month period under review were China, the UAE, Afghanistan and India in a descending order.

China bought $5.38 billion worth of non-oil goods from Iran, 11% more than last year's corresponding period.

Exports to the UAE stood at $4.63 billion, registering a more than 32.5% increase year-on-year.

Exports to Afghanistan and India hovered around $1.87 billion and $1.39 billion, respectively.

Exports to Afghanistan increased by 24% while those to India decreased by nearly 7.5% YOY.

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 items”.

A total of 17.65 million tons of petrochemicals worth $8.5 billion were exported during the period, registering an increase of more than 11% in weight and 26% in value compared with the same period of last year.  In fact, petrochemicals accounted for 31.42% of Iran’s overall non-oil exports.

Exports of gas condensates stood at $2.71 billion, accounting for 9.98% of total exports to post a year-on-year decline of more than 48% in weight and 31% in value.

Exports of liquefied propane stood at $1.22 billion, accounting for 4.49% of total exports, light oils except gasoline at $980 million accounting for 3.6% of total exports and methanol at $849 million accounting for 2.54% of total exports.

Exports of non-petroleum based products, including carpets, agricultural as well as industrial and mining products that are classified in “others” group, fell in the neighborhood of 44.48 million tons worth $15.95 billion, indicating a rise of around 5.5% in weight and more than a 20% in value YOY.

Products in “others” group were mainly exported by the private sector, accounting for 58.6% of the total value of Iran's non-oil exports.

The average price of each ton of exported commodities hovered around $404, up close to 15% compared with last year’s same period.