IRAN September 26 2016 1:44 PM
TEHRAN (Scrap Register): Iran is planning to halt the export of raw iron ore from March 2017 and instead sell processed form of the steelmaking ingredient to maximise returns under an era of low prices, Iranian Iron Ore Producers & Exporters Association said.
Tehran, which currently exports iron ore fines and lumps, is the sixth biggest supplier of the commodity to top market China, although its shipments are a fraction of those exported by Australia and Brazil that together accounted for 83% of China’s January-August imports.
Iron ore prices have fallen to below $60 a ton, currently from a record near $200 in 2011 amid a glut that has forced many low-grade producers, including those in Iran, to shut. Iron ore mines in Iran have dropped to 20 from 200 in 2013.
Iran used to import 7-8 million tons of pellets a year, with a total domestic demand of 28-29 million tons, but the new supplies should end the country’s reliance on overseas purchases and flip it into an exporter, amid slow domestic steel demand, the association said.
Iran, after being freed from most Western-imposed trade sanctions earlier this year, is looking to do more business globally. It is aiming to attract $29 billion in investment into its mining sector, and boost its crude steel production to 55 million tons by 2025 from around 16 million tons now.