Cement price in Iran may rise by 25% amid fuel price hike

Business Materials 26 May 2015 14:28 (UTC +04:00)

Baku, Azerbaijan, May 26

By Fatih Karimov - Trend: Cement price in Iran may rise by 25 percent after the administration decided to increase fuel prices, said Abdolreza Sheikhan, the secretary of the Union of Iranian Cement Industry Employers.

The government has increased the price of mazut by 20 percent, he said, adding that if the price of gas for industrial units is increased, cement price should be increased by 25 percent, Iran's Tasnim news agency reported May 26.

"Also the government has announced that gas prices for industries will not be increased, and if gas supply to cement factories is cut, mazut will be substituted," he said.

The Iranian administration has increased gas bills for household, commercial, and administrative subscribers by 15 percent.

However, gas prices have not been changed for power plants, refineries, industries, and agricultural units.

In May 2014, Sheikhan said that cement prices may be increased by 22 percent.

"Presently, Iran with an output capacity of 70 million tons of cement a year is the world's fourth largest producer of cement after China, India and the United States," he added.

Iran would become the world's third cement producer if its 75-million-ton nominal capacity becomes its actual capacity, he noted.

Edited by CN