The domestic cement industry is currently operating at 75% of its production capacity.
The domestic cement industry is currently operating at 75% of its production capacity.

Uptick in Cement Prices

Uptick in Cement Prices

Local cement prices have risen by about 5% compared to last September quotes, the head of Cement Employers Association announced.
“Each ton of ex-works type 2 bulk cement will be priced at 1,200,000 rials ($31.57) VAT-free this year,” Abdolreza Sheikhan added.
The new price has been set by CEA, Consumers and Producers Protection Organization and the Ministry of Industries, Mining and Trade.
“Cement has been offered at a discount for the past two years due to oversupply and recession in the construction sector,” he was quoted as saying by Bourse Press.
He noted that domestic production capacity stood at about 80 million tons, while actual demand was considerably lower. Subsequently, producers were forced to lower prices to find buyers.
Discounts were removed in the last fiscal year (March 2016-17), but government officials opposed any price increase to keep the market stable.
According to Sheikhan, the domestic cement industry is currently operating at 75% of its production capacity.
The industry is in hot waters. Faltering domestic demand and loss of key export destinations such as Iraq and Azerbaijan have caused tons of cement to pile up in warehouses.
In early 2015, the Iraqi government banned the import of Iranian cement, citing low quality and a drive to boost local production, which deprived Iranian producers of their most lucrative market.
Cement producers have been exploring alternative export markets ever since. They have recently made inroads into the markets of Tanzania, Egypt, Haiti, Bangladesh and Sri Lanka.
The Ministry of Industries, Mining and Trade has set the target for domestic cement output over the next decade to reach 120 million tons per year. Exports are stipulated to rise 68% to reach 32 million tons per annum.
According to Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh, Iran exported 11.5 million tons of cement during the 11 months of last fiscal year to February 18.
Iran is currently the world’s seventh largest cement producer.


Short URL : https://goo.gl/7Zhjyi
  1. https://goo.gl/aDz0Nh
  • https://goo.gl/Jldm6l
  • https://goo.gl/G7jJ6J
  • https://goo.gl/z8pvxl
  • https://goo.gl/hVTrLE

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...

Add new comment

Read our comment policy before posting your viewpoints