With the Indian government eliminating duties on cement exports and close to 1Mt have been put aside for export by March 20.
Stating the above to Fars News Agency, Mohammad Hassan Pour-Khalil, the head of Cement Guilds Association, said the association is still duty-bound to regulate the domestic market. "The guild has rationed cement for exports, but priority will still be given to supplying the domestic market first."
According to him, one million tons of cement will be exported to keep prices in check both in the national and international markets.
"Cement production will hit the 3Mt mark next year, which is more than what is needed in the domestic market," he noted.
He said the excess cement can be exported now and companies can do so within the framework of the law and in collaboration with the Customs Administration.
The nationwide scheme to regulate cement distribution channels is the main reason behind the unprecedented drop in cement prices in recent month. State subsidies for cement have been scrapped and with an increased production by private factories prices will continue to fall through next year.
In the coming weeks and months, new cement factories will be set up in Bushehr, Isfahan, Sabzevar and Delijan to increase supply.
According to Pour-Khalil, since last summer, cement deliveries to housing cooperatives have been increased by 15 million tons, which was another factor for the sharp drop in prices.
He explained that under the new government scheme, cement will only be delivered through guilds in an attempt to regulate the distribution channel, cut middleman activities and keep house and construction material prices in check.