Iranian private-sector iron ore mines are going to offer their products to domestic buyers on the Iranian Mercantile Exchange, Keyvan Jafari Tehrani, Head of International Affairs at Iranian trade group IROPEX told Argus this week.
Private-sector Iranian mines have traditionally sold into the export markets, as export prices were more favourable and they have experienced problems in the past in receiving payments from domestic steelmakers hindered by cash flow problems.
But the IME can guarantee security of payment and Jafari said private-sector mills have completed negotiations with the exchange and are now ready to offer their products on the exchange, with the first offers to be made in the next 3-4 months.
Private-sector mines are aiming to sell products at competitive prices on the IME, boosted by a recent rise in domestic and international prices. Many private-sector mining firms are burdened with high transportation charges for delivery to ports which, when coupled with low global iron ore prices in 2015 and early 2016, caused many private-sector mines to shut down.
Private-sector mines produced about 5mn t of iron ore in the Iranian year that ended 21 March 2016. The bulk of Iranian ore is produced by large state-owned mining groups, which produced over 30mn t over the same period. Iran exported more than 17mn t of iron ore in the 2015-2016 Iranian year.
source: Argus
