Ali Akbar Alvandian, the secretary of the Association of Cement Industry Employers, announced at a press conference today a decrease of 3.5 million tons in clinker production in the first five months of this year and a 73% drop in clinker exports. This production decrease is due to intensified energy imbalance, export restrictions, and rising fuel and explosive material costs.
Cement Production and Consumption
Alvandian pointed out that 27.5 million tons of cement were produced in the first five months of the year, which is an increase of 2 million tons compared to the same period last year. Additionally, cement deliveries to consumers have risen by 6% to 24.8 million tons.
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He emphasized that despite the increase in cement production, clinker exports have faced a severe decline due to the warlike and security conditions in the south of the country and the Strait of Hormuz. Clinker exports have dropped from about 3.3 million tons last year to nearly 900,000 tons.
Challenges of Exports to Iraq and Afghanistan
The secretary of the Cement Industry Association discussed exports to Iraq, stating that due to the economic conditions in that country and the decision to control cement import permits, a significant reduction in exports to Iraq has been observed. We predict that by the end of the year, cement exports to Iraq will decrease by about one million tons compared to last year.
Meanwhile, the export situation in the north and east of the country has been different, with cement exports from these regions increasing by about 19%. The main destinations for these exports are the markets of Russia and Afghanistan. Alvandian referred to the market capacity of Afghanistan and said that this market has a suitable capacity for receiving Iranian cement due to recent disputes between Pakistan and Afghanistan.
Infrastructure Problems and High Fuel Costs
Alvandian criticized the state of border infrastructure, pointing to existing problems in border management and the process of combating fuel smuggling. He added that these issues have caused trucks to be stuck at the borders for 7 to 8 days, significantly increasing transportation costs.
The secretary of the association also noted a 66% increase in the price of mazut, stating that the price of mazut has risen from about 1,300 tomans to 4,400 tomans, and this cost increase has put additional pressure on the cement industry. Furthermore, the gas demand for the cement industry, which is about 28 million cubic meters per day, has decreased to less than 5 million cubic meters, forcing the industry to use mazut.
He concluded by emphasizing the necessity of establishing unified management at the borders and utilizing modern systems to reduce truck stoppages and improve the export situation.
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