Iran's output falls 4% YoY in 6MFY17-18

The output of Iran’s cement industry fell by 3.7 per cent YoY to 28.5Mt for the first six months of the current financial year (started 20 March 2017), according to Trend News Agency. Despite this decline in output, the country’s capacity has increased within 2017 to 83Mta from 72 plants.

Deterioration in Iran’s cement exports means that it lost its 2014 ranking of second-largest exporter in the world. The country slipped to third place in 2016 and is expected to receive eighth place in 2018.

Allegations of poor-quality cement being exported to Russia and subsequently being returned to Iran, have been refuted by Abdolreza Sheikhan, secretary of Iran’s Cement Industry Employers Association. Instead, Mr Sheikhan claims that Iran exported 55,000t to Russia during the first seven months of the current financial year.

Iraq’s 2015 ban on imports from Iran due to low-quality cement, which has since been lifted, has negatively impacted their largest export market. Iraq receive 50 per cent of Iran’s total cement exports and therefore the repercussions of the repealed ban, such as the drop in shipments, has a significant effect on its market.