Iron ore exports jumped 54% to 8.46 million mt in the first half of the Iranian year, to September 21, despite the Iranian government's policy to halt exports of raw materials, official customs statistics show.
Official statistics also show the Iranian steel industry imported 65,000 mt of iron ore pellet, a 93% year-on-year drop.
Iran also imported 98,400 mt of metallurgical coal in the same period, down about 76% year on year. Met coal imports are not expected to rise because the government has imposed a 15% import duty and imports are restricted to support domestic mines. Also, one of the three blast furnaces of Esfahan Steel Co. -- the only important consumer of met coal -- currently is idle.
As a result of the current iron ore price increase, more miners are able to restart exports, mainly to China. Iron ore concentrate with 67% Fe content has been trading at about $60/mt and hematite (62% Fe) at $36/mt FOB Bandar Abbas, southern Iran, which is about $5/mt above the last week of October, local traders said.
Iran's iron ore output and export volumes have slumped over the past two years because global prices have dropped sharply. Production last year slid to 36 million mt from 56 million mt in 2013, with exports falling to 14.1 million mt from 23.6 million mt over the same period. But the slide in exports has halted and estimates are that some 15 million mt is likely to be exported this year.
