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Iran facing multiple challenges with cement export to Iraq

Business Materials 29 October 2019 21:05 (UTC +04:00)

TEHRAN, Iran, Oct. 29

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Iran is in trouble with its exports of cement to Iraq, including problems with costs, weight of exports and transportation, member of Tehran Cement Company and expert in Iran's cement industry Ali Mohammad Bod told Trend.

"The volume of cement exports has been reduced while the volume of clinker has increased," he said, because the price of clinker is based on the supply and demand.

Bod said that Iraq has reduced the cement price while the volume of construction in this country has increased.

"The number of unemployment in Iraq is currently high and the government seeks to increase construction and development projects to increase jobs," said the expert.

Bod said that transportation is one of the main issues.

"The transportation costs on land and sea have increased, and this caused certain problems," he said.

"The export of cement per ton would bring around $30 in revenues, while each ton of clinker - $18. So, it is possible to have the figures increase, depending on the border the exports come from," Bod said.

The Iraqi market is considered a strategic market for Iranian exporters, being one of the top five markets for Iran's exports.

The head of Iran-Iraq joint Chamber of Commerce has recently stated that since last year, Iraq has been trying to become self-sufficient in cement production, and would not even allow Iranians that won tenders in development projects to go on and work there.

The statistics issued in first six months of current Iranian year (started March 21,2019) show Iran has exported 3.7 million tons of clinker, and 2.8 million tons of cement.

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