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Iran's Cement Output Ranking Climbs to Seventh Worldwide

As Turkey decreased its production in 2019, Iran took the seventh place with 60 million tons of production

Iran was ranked the seventh biggest producer of cement in the world in 2019, with an output of 60 million tons.

The country was previously the world’s eighth biggest cement producer with 58 million tons, while Turkey was the seventh biggest producer with 72.5 million tons. However, as Turkey’s production declined in 2019, Iran occupied the seventh place, Iranian Mines & Mining Industries Development & Renovation cited the United States Geological Survey as reporting.

According to the report, global cement production increased from 4.05 billion tons in 2018 to 4.1 billion tons in 2019.

China was the world’s biggest cement producer last year with 2.2 billion tons, posting no change compared to 2018.

China was followed by India with 320 million tons, registering an increase of 20 million tons compared to 2018.

Vietnam was the third biggest cement producer in the world in 2019 with 95 million tons, up by 4.8 million tons year-on-year.

Next were the US with 89 million tons, Egypt with 76 million tons and Indonesia with 74 million tons.

Iran was followed by Russia with 57 million tons of cement, Brazil and South Korea each with 55 million tons, Japan with 54 million tons and Turkey with 51 million tons.

According to Minister of Industries, Mining and Trade 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 end of the fiscal 2021-22.

 

Global cement production increased from 4.05 billion tons in 2018 to 4.1 billion tons in 2019. China was the world’s biggest cement producer last year with 2.2 billion tons, posting no change compared to 2018

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 compared with last year’s corresponding period.

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

Afghanistan, Uzbekistan, Pakistan, Kazakhstan and Russia, according to Secretary of Iran's Cement Association Abdolreza Sheikhan, are top 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 exports stood at $18.3 per ton during the period under review, considerably lower compared to $33.9 per ton during last year’s similar period (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 eight months to Nov. 21 from 43% during last year's corresponding period.

The IMIDRO report on cement and clinker exports since the beginning of last Iranian year (March 2018) up until the eight month of the current Iranian year, also shows exports hit the lowest level in last year’s seventh fiscal month (Sept. 23-Oct. 22, 2018) with 887,000 tons.

Iranian exports hit the highest level in the current Iranian year’s second month (April 21-May 21, 2019) with 1.95 million tons.

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

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

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