Baku, Azerbaijan, Dec. 15
By Khalid Kazimov - Trend:
The value of mining companies in Iranian stock exchange has declined by 80 percent since March, an Iranian industry and mining deputy minister said.
Mehdi Karbasian, Iran's deputy minister of industry, mines and trade, said most of ore mines have been shut down in the country as the level of the export of steel products has fallen due to the slump in global prices.
He voiced his unhappiness with the low export level of those products obtained from mines and steel and said the country exported less than 500,000 tons of steel products between March 2013-14, Mehr news agency reported Dec. 15.
He speculated that the steel price in 2016 will be below $240 per ton which would challenge markets.
He further called for investment in the country's mining industry and said that investment in mining sector will lead to creating job opportunities and it will also increase the value of mining stocks.
Speaking about the foreign investment in Iranian mining sector he said the investors need to know the prices of gas feed stock which is expected to be announced next week.
He expressed his concerns over the American interest rates and said if the US decides to increase the rate of banking interests, the prices will dramatically decrease in global markets.
He pointed to the China's steel industry and said China produces 832 million tons of steel annually and exports about 35 million tons. However the export level reached 90 million tons last year which harmed the global market.
Early December reports suggest that Iranian steel producers have to keep more than three million tons of their steel products in warehouses as they are unable to sell the products due to economic recession in the country.
On December 8, Reza Shahrestani, a member of the association of Iranian steel producers, said that the prices of steel products have fallen from 22000 ($0.73 according to Iranian Central Bank's official rate) to 12000 ($ 0.4) rials.
Shahrestani warned that the current price is the lowest possible price and the producers cannot bear more decline.