Cement prices declining in Iran

Cement prices declining in Iran
Published: 09 October 2006

With the approach of winter and the much-anticipated decline in demand for cement, the key construction material is expected to see a further 200,000-rial per tonne fall in price.

Mohammad Hassan Pour-Khalil, secretary of Association of Cement Industry Employers, told ISNA that the price of type-2 cement, which has the highest consumption, has already come down to 720,000 rials per ton compared to last year’s prices, which had gone up to 950,000-1,000,000 rials per tonne.

He said the decline in cement prices were mainly due to the establishment of new cement production units over the past six months.

“New cement production units with a total capacity of 4.2 million tons have become operational since March,“ he said, adding that cement supply and demand will attain a balance from early 2007.

The official said each ton of cement is expected to sell for 500,000 rials this winter.

Pour-Khalil said 17.5 million tons of cement was produced during March-September, showing an increase of a million tons against the figure for the corresponding period the previous year.

He further noted that cement production is expected to reach 35.2Mt by March 2007.

He said cement exports to Iraq reached 30,000 tons in the past six months.

State organizations have been asked to import cement as part of efforts to complete development projects. There are over 9,000 incomplete development projects nationwide.

The country is faced with severe shortage and skyrocketing prices of construction materials, particularly cement and iron.

Experts say per capita cement usage will increase by 7.5 per cent per annum to reach 834 kilograms in 2011. They contend that demand is also expected to stand at 62Mta in the period.

Per capita production is expected to rise by 130 per cent to exceed one ton in 2011 against the figure for 2004.