Iranian domestic cement sales contracted 8.4 per cent YoY to 5.047Mt in December, down from 5.510Mt a year earlier, according to the Iranian cement association.
Producers manufactured 5.447Mt of cement, an 11.9 per cent YoY decrease, while clinker production shrank 15.6 per cent YoY to 5.276Mt.
Cement exports rose 18.9 per cent YoY to 548,173t, while clinker exports dropped 50.9 per cent YoY to 386,887t.
January-December 2024
In January-December 2024, cement consumption in Iran contracted 3.8 per cent to 64.047Mt, down from 66.600Mt in 2023.
Cement production totalled 69.786Mt, down 0.1 per cent YoY from 69.86Mt in 2023. Clinker out declined to 71.027Mt, down 5.1 per cent YoY from 74.86Mt.
Cement exports amounted to 6.032Mt in 2024, up 20.9 per cent YoY from 4.988Mt, while clinker exports were down 25.5 per cent YoY to 6.623Mt from 8.889Mt.
Outlook
Going forward, domestic cement demand is likely to show only modest revival amid weakening economic growth, high inflation, lingering geopolitical uncertainties and international sanctions. Although the government is promising substantial infrastructure projects, any revenue shortfall due to lower than realised oil revenues is a downside risk. Economic difficulties at home for key Iranian investors, Russia and China, further clouds the outlook for the Iranian cement market.
Meanwhile, although Iran continues to rapidly lose ground to rival clinker exporters such as Algeria, Egypt and Saudi Arabia, cement exports are expanding robustly. Iran likely overtook Germany to become the third most important cement exporter globally in 2024. Cement exports to Russia (Iranian cement accounted for a 19.2 per cent of imports into Russia in 2023, up from 6.5 per cent in 2021), Afghanistan, Oman, Armenia and Pakistan are growing strongly.
