Iran’s cement sector still facing recession

Business Materials 31 January 2018 17:48 (UTC +04:00)

Baku, Azerbaijan, Jan. 31‎

By Fatih Karimov – Trend:

The latest data released by the Iranian Ministry of Industries, Mining and Trade reveals that the country’s cement industry witnessed a decline in its performance as the cement output over the first eight months of the current fiscal year (started March 20, 2017) registered a fall by 4.8 percent year-on-year.

Iranian cement factories produced 37.69 million tons of cement during the 8-month period (March 20-Nov. 21, 2017).

On a monthly basis 4.691 million tons of cement were produced in the eighth Iranian calendar month (Oct. 21-Nov. 21, 2017), 4.8 percent more compared to the preceding month.

Iran's cement sector is suffering various problems, including deep recession in construction activities and an inadequate provision of natural gas to industrial users as well as a considerable export fall due to global slump in oil prices and regional issues.

Iran produced 54.1 million tons of cement in the last fiscal year (ended March 2017), 6.6 percent less year-on-year.

Cement production capacity of Iran soared from 29.5 million tons in 2001 to 83 million tons in 2017. The number of cement producing factories also increased from 30 to 72 in the same time span.

The output of Iran’s tile and ceramic industry increased by 16.6 percent during the first eight months of the current fiscal year to 235 million sq. meters, according to the ministry's data.

Iran produced 32.76 million square meters of tiles and ceramics in the eighth Iranian calendar month, 11 percent more compared to the preceding month.

The country’s tiles and ceramics output amounted to 292.5 million square meters last fiscal year (ended March 20, 2017), 4.4 percent less year-on-year.

Iranian officials have earlier announced that the country’s tile and ceramic industry’s nominal production capacity stands at 700 million square meters per year.

The officials have also said that 133 manufacturing units are active in tile and ceramic production nationwide.

Iran also produced 649,000 tons of glass in the seven-month period, 26.3 percent more year-on-year, according to the Ministry of Industries, Mining and Trade of Iran.

The Iranian manufacturers produced 67,800 tons of sanitary wares in the period, 26.6 percent more year-on-year.