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Cement Industry Struggling to Survive

Posted on : 18 Jul, 2016

 

Iranian cement producers were optimistic of the lifting of international sanctions earlier this year, in anticipation to accessing new markets to offset dwindling local demand. However, the problems being faced by the cement industry in this post-sanction era seem daunting.

 

The Ministry of Industries, Mining and Trade also had big plans for the cement industry, having announced that cement output would reach 120 million tonnes annually till 2025. Overseas sales were projected to increase to 32 million tonnes per year over the next decade, with exports of 21 million tonnes a year achieved by 2017. However, according to data from Iranian Cement Employers Association, cement and production has been steadily declining. Production output during March 2015-2016 dropped 11.8 per cent for cement and 13.9 per cent for clinker. Cement and clinker exports also took a hit, falling 18.4 per cent and 17.4 per cent for the same period.

 

Regional demand for Iranian cement has decreased due to budget and infrastructure cutbacks in Iran’s main cement trade partners. The Iraqi cabinet recently banned the import of foreign cement in a bid to support their domestic producers, while Baghdad slapped an import tariff of $20 per tonne on Iranian cement for the same reason. However Iran – with an annual cement production capacity of about 80 million tonnes – is now eyeing Tanzania and Egypt as alternative markets for their clinker and white cement exports.

 

Find out more about the outlook for the cement industry in Iran at the 11th Middle East CemenTrade on 4-5 October in Dubai.

 

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