Iran’s Rising Iron Ore Production in H1 – Mr Amir Ali Akbari

According to the data released by IMIDRO recently, Iran’s iron ore concentrate output has been recorded at 18.89 MnT, up 21% Y-o-Y. Iron ore concentrate has largest share in Iran’s mineral production. Golgohar Mining & Industrial Complex occupied largest share of 36% followed by Chadormalu Mining & Industrial Complex. Below is the mine-wise bifurcation of the iron ore concentrate figures for first half of this fiscal:

Source: IMIDRO

SteelMint interviewed Mr. Amir Ali Akbari – from Copper Star Co. in Iran. The company is into exporting iron ore because of long term contracts with mines apart from selling cargoes in exchange. Below are the excerpts of the interview:

1. How do you see the impact of Iran’s rising iron ore concentrate production ?

Producing more iron ore concentrate in Iran is adding value for the country but no doubt due to high cost and prices of road transportation in Iran, mines with low grade iron ore cannot survive in export market.

2. How do you see the current seaborne iron ore market scenario in China and the index in next one month

Seaborne iron ore prices in China are still on the higher side. Current situation in Iran is not good at all, high local transport shipment costs have made situation difficult for Iranian exporters as local transport cost is very high.

3. Have we recently concluded any export deals for iron ore? 

Yes we will load and export one 55,000 tones cargo of magnetite Fe59% for China shortly. And from next month we start exporting of Fe 62% magnetite through a long term contract with China. Selling Price is based on Fe 58% bench mark index.

4. Do you feel surge in iron ore futures & increase in steel prices result in further increase in iron ore prices?

I think it should be like that and we will face with a 2 or 3 month positive wave in the steel market. But it does not mean that exporters should wait for the iron ore prices to move higher.

5 How has Iran iron ore production been so far in this financial year ? Have any new mines begun production ?

This year production and specially exporting was excellent and despite of more sanctions and fall in prices , Iron ore export amount succeeded 27 million tons, including that of private mines, according to figures reported by Iran Custom.

As per received reports, Iran exported 9.27 MnT iron ore during first half of current fiscal (21 Mar-22 Sept), registering growth of 9% Y-o-Y.

A new hematite in east of Iran started to work that has a very good quality . Of course mines in west of Iran have very good products but by start of cold season , working in west region would be difficult.