10% Growth in Iran's Cement Production

EghtesadOnline: Iran produced 41.5 million tons of cement during the first eight months of the current fiscal year (March 21-Nov. 21) to register an increase of more than 10% compared with last year’s corresponding period, the Persian economic daily Donya-e-Eqtesad reported, citing data from the Ministry of Industries, Mining and Trade.

News ID: ۷۸۵۲۸۳

19 January 2020

According to Industries Minister Reza Rahmani, Iran’s cement production capacity stands at 86 million tons per year.

The Industries Ministry aims to increase this capacity to 120 million tons/year by the fiscal 2021-22, according to Financial Tribune.

Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show a total of 11.4 million tons of cement and clinker (raw materials used in the production of cement) were exported from Iran during the first eight months of the current Iranian year (March 21-Nov. 21, 2019) to register a 22% rise year-on-year.

Thirty-seven countries were the destinations for Iran's cement and clinker exports, with 10 countries accounting for 78% of the total tonnage.

Afghanistan, Uzbekistan, Pakistan, Kazakhstan and Russia, according to Secretary of Iran's Cement Association Abdolreza Sheikhan, are major destinations for Iranian cement, while Iraq, Sri Lanka, Kuwait, India, the UAE, Kenya, China and Oman are among the main buyers of Iranian clinker.

The average price of these exports stood at $18.3 per ton during the period, considerably lower compared to $33.9 during last year’s similar period, marking a 46.02% year-on-year decline.

According to the report, the sharp decline is rooted in the fact that the share of clinker in exports has increased to 52% during the eight months to Nov. 21 from 43% during last year's corresponding period.

The IMIDRO report reviewing cement and clinker exports since the beginning of the last Iranian year (March 2018-19) up until the eighth month of the current Iranian year, also shows exports hit the lowest level in last year’s seventh month (Sept. 23-Oct. 22, 2018) with 887,000 tons, while it hit the highest level in the current year’s second month (April 21-May 21, 2019) with 1.95 million tons.

In terms of average export price, the lowest level since the beginning of the last Iranian year (started March 21, 2018) was in the following year’s seventh month (Sept. 23-Oct. 22, 2019) at $17.3, while the highest level was in last year’s first month (March 21-April 20, 2018), at $39.7.

Iran held on to its ranking as the world’s 10th biggest cement producer in 2018, although production decreased by 1.85% compared with 2017 to stand at 53 million tons, a report published by the United States Geological Survey says.

According to the USGS report, Iran’s capacity for clinker production in 2018 remained at 80 million tons, the same as in 2017. Iran had the sixth largest clinker production capacity in the world, sharing the spot with Russia.

Following the dramatic rise in production costs, Iran’s Cement Employers Association raised cement prices by 37% as of June 27.

In a meeting held on June 26, among the association’s members of the board of directors, it was decided that increasing the prices is necessary to sustain production and jobs.