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Iran shares data on cement production

Business Materials 19 May 2021 11:56 (UTC +04:00)
Iran shares data on cement production

TEHRAN, Iran, May.19

Trend:

Iran's cement production has increased to 68 million tons during the last Iranian year (started March 20, 2020), said the Minister of Industries, Mine, and Trade.

The volume of cement production indicates a 13 percent increase compared to the previous Iranian year (started March 21, 2019), said Alireza Razmhosseini, Trend reports citing IRNA.

In terms of production costs, the price of gas for energy-consuming industries doubled while the price of electricity for heavy industries increased four times. Furthermore, transportation costs had a 66 percent growth.

The price of fire brick used in the cement industry had a 165 percent increase while the price of necessary parts in the cement industry had a 242 percent increase in price, moreover, the price of cement bags had a 280 percent increase.

The Ministry of Industries, Mine and Trade have announced three packages to provinces in order to support production and remove obstacles.

"About 6,000 mineral areas to be allocated to investors through public tender. Although cement production makes up only 4 percent of the construction industry we should support production and employment in this field," Razmhosseini noted.

The increase of housing price is another factor in addition to the foreign currency rate and an inflation rate that affect the price of cement.

The studies show that for every 10 percent liquidity about 5 percent has been added to the inflation and for each 10 percent increase of foreign currency the price of imported commodity increased by 8 percent that caused an increase in cement price.

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