The Iranian Ministry of industry, mine and trade stopped issuing permits exports of iron ore pellet amid shortage in domestic market. Only the cargoes which were booked earlier are been loading but are delayed and are facing demurrage costs.
Towards June, the Iranian ministry had announced that only mines and not traders will be permitted to export iron ore pellet and concentrate. Besides, announcement was made for mines to fulfill the domestic demand at first and then proceed with exports. As per few sources this is temporary for a period of six months; however confirmation on the same was not received at the time of publishing this report.
Iran pellet production moved up last year
A total of 45.48 MnT of iron ore concentrate was produced in Iran in the last Iranian year (ended March 20, 2019) up 17% against last year. Pellet output was recorded at 41.3 MnT, up 32% Y-o-Y. Golgohar was the largest producer with 11.7 MnT followed by Mobarakeh Steel Company with 7.45 MnT & Khouzestan Steel Company with 6.31 million tons. The government is concerned that the domestic market may face a shortage of concentrate, particularly when imports are not possible under US sanctions.
Iran pellet exports
According to data maintained with SteelMint, Iran exported around 15.3 MnT iron ore & 0.75 MnT pellets in last Iranian year. In first four months of current Iranian year, pellet exports were recorded at 0.27 MnT against nil in same time frame last year.
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