Iran Cement Exports at 4.8m Tons in 9 Months

EghtesadOnline: Iran produced 41 million tons of cement during the nine months to Dec. 21, of which 4.8 million tons were exported.

News ID: ۷۸۴۴۷۸

13 January 2019

According to Iran Cement Association Secretary Abdolreza Sheikhan, each ton of domestically-produced cement is currently priced at $25-30 in export markets, which indicates that earnings amounted to $120-144 million.

“Cement production during the nine months saw no significant change compared with the similar period of last year while exports of the product grew by 2% in weight year-on-year. Afghanistan was our biggest export destination,” he was quoted as saying by Mizan Online.

Iraq, Bangladesh, member states of the Commonwealth of Independent States and some African countries are other customers of Iranian cement, according to Financial Tribune.

Exports in the last fiscal year (March 2017-18) stood at 6.08 million tons, registering a 16.7% rise compared to the year before.

“Iran is the world’s sixth biggest exporter of cement products,” IRNA quoted Sheikhan as saying.

Based on figures released by the Islamic Republic of Iran Customs Administration, Iran has exported 12 million tons of cement products worth over $407.7 million during the nine-month period, indicating a 1% rise in weight and 9% decline in value respectively compared with the corresponding period of last year.

Sheikhan estimates that cement production will reach 53 million tons by the fiscal yearend (March 20, 2019).

“Our production capacity stands at 87.5 million tons per year,” he said.

According to the official, the recent increase in marine transportation tariffs and the price rise for production line parts or other materials like refractory bricks have increased cement production costs by 30-40% in the current Iranian year.

“This is while the government only allowed for a 12% increase in end prices, which does not cover our expenses. We are currently in talks to increase the prices again.”

According to former deputy minister of industries, mining and trade, Jafar Sarqeini, Iran aims to increase its annual cement production capacity to 100 million tons by 2021 and to further increase it to 120 million tons by the end of the 20-Year Vision Plan (2025).