Iran’s trade, excluding crude oil exports, during the first two months of the current fiscal year (March 21-May 21) stood at 22,196 tons worth $16.63 billion, according to the latest statistics released by the Islamic Republic of Iran Customs Administration.
Exports hit 17,014 tons worth $8.52 billion, registering a 1.6% and 37% year-on-year growth in weight and value respectively.
China with $2.72 billion, accounting for 32% of Iran’s total exports, was the main destination of Iranian goods during the period. It was followed by the UAE with $1.5 billion (17.63%), Iraq with $1.31 billion (15.41%), Turkey with $766 million (9%) and India with $290 million (3.41%), IRNA reported.
Imports stood at 5,182 tons worth $8.12 billion, registering a 3.37% decline in weight, but a 24% growth in value compared with the corresponding period of last year.
The UAE with $2.25 billion, constituting 27.69% of Iran’s total imports, was the top exporter to Iran during the period. It was followed by China with $2.12 billion (26%), India with $2.12 billion (26%), Turkey with $875 million (10.78%) and Russia with $319 million (3.93%).
The IRICA data show Iran registered $401 million in trade surplus during the two months to May 21.
Fiscal 2021-22 Trade
Iran’s foreign trade, excluding crude oil exports, stood at 162 million tons worth $100 billion in the fiscal 2021-22, registering a 38% rise in value compared with the year before, according to the head of the Islamic Republic of Iran Customs Administration.
“Exports stood at 122 million tons worth $48 billion, registering a 41% increase in value compared with the previous year. Iran’s top five export destinations were China, Iraq, Turkey, the UAE and Afghanistan,” Alireza Moqaddesi was also quoted as saying by IRNA.
Imports hit 40 million tons worth $52 billion during the same period, registering a 21% and 36% growth in weight and value respectively.
The UAE, China, Turkey, Germany and Russia were the main exporters.
“The imports mainly included essential goods, raw materials and production line machinery,” he added.
Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels.
Iran’s basic imports in the fiscal 2021-22 included corn, unrefined vegetable oil, pharmaceuticals and medical equipment, wheat, oilseeds, soymeal, barley, rice, sugar, heavy vehicle tires, fertilizer, pesticide and insecticide, veterinarian medicine, red meat, chicken, eggs, pulses and tea.
Moqaddesi noted that 12.5 million tons of foreign goods were transited through Iran during the same period to register a 68% rise compared with the year before a seven-year high.
IRICA says that during the two years to fiscal 2021-22, only around 7.5 million tons of goods were transited per annum, adding that the reasons for the significant increase are the lifting of most restrictions over Covid-19, the government’s establishment of stronger political and economic ties with neighboring countries and the better cooperation of related bodies.
Iran reportedly earns $150 and $50 for each ton of transit goods via road and rail respectively.
Foreign Trade
Iran’s foreign non-oil trade stood at 145.7 million tons worth $73 billion in the fiscal 2020-21.
According to IRICA, exports accounted for 112 million tons worth $34.52 billion and imports constituted 34.4 million tons worth $38.5 billion.
Iran’s main exports included gasoline, natural gas, polyethylene, propane and pistachio. Pistachio exports stood at $1.2 billion.
The main export destinations were China with 26.6 million tons worth $8.9 billion, Iraq with 25.6 million tons worth $7.3 billion, the UAE with 15.2 million tons worth $4.6 billion, Turkey with 6.3 million tons worth $2.5 billion and Afghanistan with 7 million tons worth $2.2 billion. These five countries imported more than 80 million tons of non-oil goods worth $25.7 billion.
China, Iran’s biggest trading partner, accounted for 26% of Iran's total non-oil exports, as 26.58 million tons worth $8.95 billion were shipped from Iran to China during the period. Pistachio, nuts, minerals, construction materials, methanol, carpet, iron ore, glassware and fruits were the main types of goods exported from Iran to China.
Imports from China totaled 3.54 million tons worth $9.76 billion during the year to March 21, 2021, to account for 10.6% of the total volume of Iran's imports and 25.3% of the total value of imports during the period. Industrial machinery and raw materials, medical equipment, paper, wood, textile, auto parts and sports equipment were Iran's main imports from the South Asian state in the fiscal 2020-21.
A total of 23.1 million tons of essential goods, including corn, cellphones, rice, soymeal, oilseeds, wheat and unprocessed oils, worth $12 billion were imported during the period under review.
Iran imported 3.5 million tons of essential goods worth $9.7 billion from China, 5 million tons worth $9.6 billion from the UAE, $4.3 billion from Turkey, 2.2 million tons worth $2.1 billion from India and 1.2 million tons worth $1.8 billion from Germany in the year to March 20.
Raw Materials Sold for Knowledge-Based Products
According to the Trade Promotion Organization of Iran, the value of Iran's non-oil exports and imports in the fiscal 2020-21 were almost equal while the weight of exported products was three times that of imports, which indicate that the country mainly exported raw materials and imported knowledge-based products.
A country's trade volume reflects its role in the global economy and its co-dependence with the international environment.
The higher the share of mining trade in a country, the more dependent its economy is on natural resources and away from a knowledge-based economy.
In the fiscal 2020-21, about 60% of Iran's non-oil trade was with China, the UAE and Turkey.
Iran's non-oil exports mainly included commodities and low-value products, but its imports mainly included advanced and high-priced products.
According to the Value Chain Management Studies Center, the value of each ton of Iran's non-oil exports over the past five years was between $300 and $400, while the value of each ton of Iran's imports over the same period was $1,200-1,500.
The value of Iran's non-oil exports has been largely affected by global oil prices.
From Iran's total $43.2 billion in non-oil exports in the fiscal 2020-21, about $10.7 billion (equivalent to 25%) were petrochemical and petroleum-based products.
Exports of petrochemicals and petroleum-based products often include polymer, methanol and urea.
The rise in export value of petrochemicals and petroleum-based products in the fiscal 2020-21 was partly due to the rising global prices of oil and in part due to the increasing volume of petrochemical exports.
A positive trade balance means export earnings can catch up with import needs. Otherwise, the government will have to use earnings from the sales of raw materials to supply foreign currency resources for imports. Therefore, dependency on mineral resources increases, as trade balance turns negative.
Notably, in the last six years, only in fiscal 2016-17 and 2017-18 was the non-oil trade balance positive.
