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Increase in maritime transport prices - barrier to competition in Iran's cement industry

Business Materials 13 January 2019 14:37 (UTC +04:00)

Baku, Azerbaijan, Jan. 13

By Elnur Baghishov – Trend:

The imposed sanctions, as well as the rise in international maritime transport prices have had a negative impact on Iran's export of cement and competition in cement industry, Alirza Sheikhan, secretary of the Iranian Cement Industry Employers Association, said.

Cement production in Iran has reached 87.5 million tons per year. Thus, 48 million tons are used throughout the country and less than 15 percent are exported, Sheikhan added, Trend reports referring to IRNA.

The negative competition among cement companies is declining as a result of the creation of export-oriented working groups in Iran's eastern, western and southern areas. The positive actions in the export of additional products have been recently taken, he added.

Presently, the revenues worth $25-30 are obtained from each ton of cement and the current export potential of the country is 12 million tons, Sheikhan said.

Iran exports cement to 17 countries, including Iraq, Afghanistan, the CIS countries, Bangladesh and Africa. Iran is the sixth biggest cement exporter in the world.

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