Based on cement association reports, the request for a price increase has been submitted to the government. The capacity of Iran’s cement production is around 82 Million a year. Last year (ending 20 Mar 2015) the production and sale of 67 Million tons was recorded. Currently the cost of production has increased by 20 percent. At the present time the EXW price of cement is 1000 IRR per ton which is requested by the cement association to increase by 17 percent.
- Iran with 72 cement companies is one the major cement exporters in the world. With 110 percent growth during the last 10 years, the production in this sector has reached 70 million tons annually. In 2002, regarding an approved comprehensive plan, most of the cement companies started to launch new production lines and increased their production capacities by 2-3 times which led to high cost of depreciation and interest expenses for foreign loans in past few years. Moving toward free rates for cement prices was the goal of this comprehensive plan. However, the contrary previous government actions led the prices fall to less than one fifth. Currently this sector is dealing with 15 Million tons excess surplus due to rigid controlling in prices besides the current recessions in the construction sector. For supporting the cement sector, the Housing and Urban development Ministry has suggested using concrete cover instead of Asphalt in road projects. Currently the cement consumption is 720 kg per capita in Iran which is planned to reach 770 in case of positive growth rate.