Mineral Exports Rise

Steel and steel products made up the bulk of the export value with aggregated shipments of 2.95 million tons worth $1.29 billion.

Iran exported 21.7 million tons of mineral products worth $2.9 billion during the first five months of the current Iranian year (March 20-August 21), registering 32.3% and 23% growth in weight and value respectively compared to last year’s corresponding period. Imports stood at 2.23 million tons worth $1.44 billion to record 39% and 26% decline, Iranian Mines and Mining Industries Development and Renovation Organization reported.

Steel and steel products made up the bulk of the export value with aggregated shipments of 2.95 million tons worth $1.29 billion – 62% and 17% growth in weight and value respectively.

Iron ore was Iran’s second biggest mineral export with 7.3 million tons worth $286.6 million, showing 67% and 83% growth year-on-year.

Copper came third as 382,061 tons worth $422.5 million were exported – 471% and 514% up in weight and value.

Other mineral exports during the five-month period were cement, stone, lead, aluminum, zinc, chrome, ferroalloys, molybdenum, coal, gold and precious metals, mica and titanium worth $205.5 million, $124.8 million, $81.8 million, $74.8 million, $71.6 million, $31.4 million, $25.8 million, $11 million, $2.3 million, $109,383, $97, 389 and $74,880 respectively.

Steel and steel products also topped the list of imports with over 1.5 million tons worth more than $1 billion, down 2% in weight and 15% in value. Aluminum was second in the list with 140,300 tons worth $121.7 million – down 3% and 28%.

  Export Destinations

China was the main destination for Iran’s mineral exports during the period, as over 8.7 million tons worth $641.6 million were shipped there. Iron ore was the main export to the world’s third largest economy, followed by stone, copper, chromite, zinc, steel, lead, aluminum and coal.

Iraq was the second biggest destination with 3.9 million tons worth $353.3 million. Cement topped the list of exports to Iraq, followed by steel, stone and aluminum.

The United Arab Emirates, Turkey, Italy, Oman, Afghanistan, Spain, India and Taiwan came third to 10th.

  Contributing Factors

The increase in the value of Iran’s mineral exports was largely due to the rise in commodity prices, in addition to China’s growing demand for Iranian iron ore, low domestic demand for steel, and Iran’s higher copper concentrate output.

At the beginning of 2016, steel prices rallied with the speculative fever in iron ore and signs that extra stimulus would spark a recovery in the Chinese economy. Both iron ore and steel prices peaked in the global markets in late April, Bloomberg reported.

Iron ore came out of 2015 at its lowest in years as it dropped to about $30 per ton in December.

The steelmaking material took on a positive trend in early 2016, and over signs of China’s cutbacks in its steelmaking capacity, spiked to a high of $70.46 per ton in April. The commodity’s gains lost steam in early May and have been recovering ever since. According to Metal Bulletin, 62% Fe iron ore CFR China stood at $60.22 per ton on Monday.

As for steel, after a rebound in early 2016, hot-rolled band ready for delivery at the port of choice hit about $450 per ton in late April, according to Steelbenchmarker, a World Steel Dynamics company.

Copper prices have also been on the rise lately. After hitting a low of about $4,600 per ton, prices rebounded to more than $5,000 in late July, according to the London Metal Exchange statistics.