Economy, Business And Markets
0

Cement Slump Gives Rise to Clinker Exports

Cement Slump Gives Rise to Clinker ExportsCement Slump Gives Rise to Clinker Exports

More than 20 million tons of cement are currently stored in warehouses due to sluggish demand, a member of Tehran Chamber of Commerce, Industries, Mining and Agriculture said.

Mohammad Reza Atabak added that close to 60% of domestic cement factories have stopped production, ISNA reported.

Clinker is the main raw material used in the manufacture of cement.

The slump in cement demand has pushed the producers to opt for clinker exports that has drawn heavy criticism from experts and the government alike because of forgoing the potential value added.

However, Chairman of Iran’s Cement Employers Association Abdolreza Sheikhan has defended the strategy as a “common, worldwide practice” emphasizing its necessity in the current market situation.

Iraq is currently Iran’s main clinker export destination, after the eastern neighbor imposed heavy import tariff on Iran’s cement to protect its own cement producers and moved towards importing Iran’s clinker at low prices.

More than 41.3 million tons of cement and 445.3 million tons of clinker were produced during the eight months ending November 21.

Production of cement and clinker hit 66.4 million tons and 70 million tons respectively last year.

Financialtribune.com