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Two Chinese traders told the news agency they could only use cash and telegraphic transfer as payment methods, as it was “too sensitive” to go through banks for transactions with Iran.
“The main advantage of Iran ore is its low cost,” one trader, who buys 2mn to 3mn tonnes of iron ore from Iran a year, was cited as saying. “If [Iran’s] prices go up [from the tariffs], they can be totally replaced by other mainstream ores,” he added, when asked why China did not buy more before the tariffs go into effect.
Iran shipped a total of 17mn tonnes of iron ore to overseas markets in the fiscal year ended March 20, 2019, according to data from the Iranian Mines and Mining Industries Development and Renovation Organization.
China consumes around 90% of Iran’s exports of the material. China bought 14.7mn tonnes of iron ore from Iran in 2018, accounting for 1.4% of its total imports.
In the first five months of 2019, Iran’s steel mills produced a total of 10.62mn tonnes of raw steel, ​Financial Tribune​ reported on July 8.
The five-month figures are 5.5% more year-on-year (y/y), according to World Steel Association (WSA) statistics.
Iran has been accused of dumping cheap steel on the international market for several years due to its low production costs. Meanwhile, Iranian metal ​exports are also a target of US sanctions​, ​with the Trump administration placing exports from Iran under restrictions on May 8.
According to the Brussels-based international trade organisation for the steel industry, Iran’s production in May rose by 3.8% y/y to 2.23mn tonnes.
Iran's world rating remains unchanged, the figures suggest, despite the US sanctions imposed in May.
Overall, the country is in 10th place among the largest producers of raw steel in the world.
9.1.12 ​Renewable energy sector news
Iran and Russia have signed a contract to construct a thermal power plant in southern Iranian Hormozgan province, according to Mehr News Agency. ​“Russia is to allocate a loan worth €1.2bn for the construction of 1,400-megawatt Sirik thermal power plant [in Sirik County],” Iran’s Energy Minister, Reza Ardakanian, was quoted as saying during a contract signing ceremony held in Tehran on September 15.
He added that the required construction sites and equipment for commencing the project would be provided within the next two months.
The project’s total cost has been estimated at €1.4bn. The provision of the loan had been sought for two years. Iran is to bear the remainder of the costs. Officials expect the plant to produce enough energy for 150,000 residential buildings.
According to Ardakanian, other projects set to leverage Russian capital include the construction of Inche Boroun-Garmsar railroad, expected to be completed by March 2020.
Russia has engaged in delivering other power installations in Iran including the Bushehr nuclear plant.
The Bushehr-2 expansion of the plant has been on the cards for several years. It was initially touted for completion by 2020. The plant is expected to generate 1,000 MW of electricity for southern parts of Iran.
Tehran and Moscow signed a contract for the expansion of the Bushehr site in 2014, a year after Russia got the first phase up and running, but both sides put
49​ IRAN Country Report​ March 2020 www.intellinews.com