Economy, Domestic Economy
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Growth in Iran’s Iron Ore Concentrate Output

Growth in Iran’s Iron Ore Concentrate Output Growth in Iran’s Iron Ore Concentrate Output

Iran’s iron ore concentrate production increased in the first 10 months of the current Iranian year (March 20, 2016–Jan. 19, 2017) owing to better export demand and higher domestic steel production.

During this period, iron ore concentrate production rose 17.27% to reach 25.47 million tons year-on-year, according to Iranian Mines and Mining Industries Development and Renovation Organization. Three major mining companies accounted for the biggest part of total volume: Golgohar Company (40%), Chadormalu Mining and Industrial Company (30%) and Iran Central Iron Ore Company (13%), Metal Expert reported.

The rise was driven by the continuous growth of crude steel production in the country, which demands higher volumes of raw materials. 

Over the first 10 months of the current Iranian year, Iranian steel mills produced 15.4 million tons of crude steel (up 10% y-o-y). Foreign markets also contributed to the growth, where miners shipped 15.15 million tons of iron ore (up by 50% y-o-y).

The Iranian government plans to introduce a 5-15% export tariff on fines and lumps of all grades in the next Iranian year (starting March 21, 2017), which has raised concerns among Iranian miners as it might undermine their foreign activity and lead to oversupply in the local market.

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