An estimated 2.5 million tons of steel and steel products worth $1.1 billion were exported during the first four months of the current Iranian year (March 20-July 20).
An estimated 2.5 million tons of steel and steel products worth $1.1 billion were exported during the first four months of the current Iranian year (March 20-July 20).

Mineral Exports Rise, Imports Fall Over 4 Months

Crude steel and steel products accounted for nearly half of the overall export value
Steelmakers increased exports against the backdrop of an ongoing downturn in the global steel market

Mineral Exports Rise, Imports Fall Over 4 Months

Mineral exports reached 17.5 million tons worth $2.4 billion during the first four months of the current Iranian fiscal year (March 20-July 20), which indicates a 31% rise compared to last year's corresponding period. Imports stood at 1.7 million tons worth $1.1 billion during the same period, showing a 29% decline year-on-year, Iranian Mines and Mining Industries Development and Renovation Organization reported.

Crude steel and steel products accounted for nearly half of the overall export value, with aggregated shipments weighing 2.5 million tons and worth $1.1 billion, recording 36% and 88.7% growth respectively.

Copper and copper products came next with 281,300 tons worth $373.3 million -- a four-fold increase in volume and 52% rise in value.

Iron ore was third with exports of more than 5.7 million tons worth $227.2 million, up 69% in volume and 86% in value terms.

Cement, stone, lead, zinc, aluminum, chromite, ferroalloy, molybdenum, coal and coke and mica were other mineral exports during the four-month period earning $165.9 million, $99.3 million, $65.6 million, $53.9 million, $50.2 million, $24.8 million, $21.5 million, $8.4 million, $1.2 million and $100,000 respectively.

On the import side, steel again topped the chart as 1.2 million tons of steel products worth $822.7 million were shipped into the country to register 2% and 16% decline respectively.

Aluminum products were the second major mineral imports with 112,520 tons worth $94.5 million. Other imports included titanium, coal and coke, ferroalloys, copper and downstream products, nickel, iron ore, lead, zinc, chromite, precious metals (gold, silver etc.,) antimony and mica.


> Global Downturn

Iranian steelmakers increased exports against the backdrop of an ongoing downturn in the global steel market.

As a result of a saturated global steel market and record exports from China, over 85 new duties and other taxes were slapped by different countries on steel imports in the first half of 2016, according to Russian Steel Association as reported by Bloomberg.

Earlier this month, Chinese and Russian producers of non-stainless cold rolled steels were hit by the European Union with five-year tariffs as high as 36.1% after the EU found that imports from the two countries unfairly undercut local manufacturers. The US has also imposed duties on certain hot-rolled steel flat products from seven countries including Australia, Brazil and Japan.

China's promises to significantly cut down on its steelmaking overcapacity have yet to be kept as output in July was higher than the same month a year earlier. Furthermore, over the seven months of 2016, nationwide production was down just 0.5%. The country accounts for about half of worldwide output.

Meanwhile, Iran's crude steel output for the first half of 2016 reached 8.8 million tons, which indicates a 5.2% growth compared to last year's similar duration. This improves Iran's previous ranking by one notch to become the world's 12th largest producer of the industrial material so far this year, between Italy (11th) with 12.1 million tons and Mexico (13th) with 8.7 million tons of crude steel input during the six-month period, according to World Steel Association data.

The world's 66 steelmaking countries produced an aggregate of 794.8 million tons of steel, registering a 1.9% decrease compared to the first half of 2015.

Iranian steelmakers set a record last year (March 2015-16) by exporting more than 4.1 million tons of steel products valued at about $7 billion. Crude steel exports stood at 1.8 million tons.

According to Jafar Sargheyni, deputy minister of industries, mining and trade, Iranian steel mills are expected to export 6 million tons of steel by the end of the current Iranian year (March 2017).

Domestic crude steel production capacity presently stands at about half the ambitious target of 55 million tons per year as per the 20-Year National Vision Plan (2005-25), IMIDRO says. The vision plan sees Iran as the world's 6th largest steelmaker by 2025.

> Rising Copper Production

Iran is the leading copper producer in the Middle East and North Africa region. In 2015, the country's production of copper concentrate increased by 23.1% to 979,650 tons and copper anode by 0.5% to 232,950 tons.

National Iranian Copper Industries Company, Iran's largest producer of copper, added about 300,000 tons per year to its total copper concentrate production capacity by commissioning two ore beneficiation units in Sarcheshmeh and Sungun copper mines.

The capacity of Sarcheshmeh copper complex, subsidiary of NICICO, increased by 160,000 tons/year of copper concentrate and 1,100 tons/year of molybdenum concentrate, whereas that of the Sungun copper complex doubled to 300,000 tons/year of copper concentrate.

The company was also in the process of building the 200,000 ton per year Khatoonabad refinery in Kerman and the 50,000 ton per year Sungun solvent extraction–electrowinning plant to produce copper cathodes. In addition to 496,450 tons of copper concentrate, NICICO produced about 6,068 tons of molybdenum concentrate and 565 tons of sludge containing gold and silver in Sarcheshmeh in 2015.

The rising production capacity has caused copper producers to increasingly focus on exports. According to Mehdi Karbasian, head of IMIDRO, Iran has gained access to most European markets it lost during the sanctions regime and can further boost exports.

Short URL : http://goo.gl/nTRWyS
  1. http://goo.gl/S3z5hE
  • http://goo.gl/DoOhd1
  • http://goo.gl/kJ85is
  • http://goo.gl/2jMHcv
  • http://goo.gl/MC6DJj

You can also read ...

Over €81m Worth of Airport Equipment Purchased  Post JCPOA
Iran Airports & Air Navigation Company, an arm of the...
Persian Melon Exports Earn $34 Million
Iran exported 88,940 tons of Persian melons worth $34.43...
Date Exports Grow 27.7% to $102m in 4 Months
Close to 89,220 tons of different kinds of dates worth more...
Tehran Shows 4th Biggest Upturn in Economist’s Livability Index
Tehran is one of the top five cities in the world to have...
Potato Seeds Imported From  5 Countries
More than 875 tons of potato seeds worth $1.63 million were...
Decline in Non-Oil Trade With Taiwan
Iran traded 455,922 tons of non-oil commodities worth $326.43...
Afflictions of Higher Education: Degreeism, Poor Supervision
Less than a decade ago, education, especially in prestigious...