Economy, Business And Markets

Clinker Production to Resume

Clinker Production to ResumeClinker Production to Resume

Cement factories will resume production of clinker as of February 13, ILNA cited the secretary of Iran’s Cement Industry Employers Association as saying on Saturday.

Abdol-Reza Sheikhan said based on the agreement with the oil ministry, which was enforced on January 14, the production of clinker was discontinued for a month, with the aim of helping cement factories get rid of extra costs they bear for natural gas and mazut during the winter.  

Sheikhan said the clinker factories’ inventories had been so full that any further production could lead to reduced quality. The move has also been assessed as good leverage for regulating the cement market. The abundant production of clinker in recent months and the consequent production of cement triggered a negative competition among cement producers in a way that they supplied the material below market prices.

The secretary praised the oil ministry for its close cooperation, saying since mid-summer, cement producers have been buying mazut from the ministry on credit.

Based on the agreement, the oil ministry is providing the cement industry with mazut, which is priced 2,500 rials per liter, while charging them the price of natural gas which is 1,210 rials per liter. The move will also enable the oil ministry to deliver natural gas to other industrial sectors as well as to household consumers in a more efficient manner, especially during the winter when natural gas consumption reaches its climax.