Economy, Business And Markets

Iron Ore Production Growth Marred by Falling Prices

Iron Ore Production Growth Marred by Falling PricesIron Ore Production Growth Marred by Falling Prices

According to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), the mining companies affiliated to IMIDRO sold 9.46 trillion rials worth of iron ore last Iranian calendar year (ended March 20), which indicates a 16% decline compared to the previous year, IRNA reported.

Based on statistics provided by the industry ministry, the total iron ore production last year stood at 65 million metric tons, up 5% from a year earlier in which 62 million tons were produced.

Despite the growth in iron ore production last year, the sharp global decline in iron ore prices prevented the growth to compensate for the low prices. In August last year, every ton of iron ore cost $92.63 while it fell 27.2%, reaching $67.39 in January this year.

Considering the continued decline in global process, the production volume for the current year has been predicted to be the same 65 million tons.

Earlier, the IMIDRO said the country would no longer export iron ore as of March 20, 2017. According to the IMIDRO chief, once the country’s comprehensive steel plan is finalized, the entire domestically-produced iron ore will be consumed by Iranian producers of iron ore pellets and iron ore concentrate.