Page 56 - IRANRptNov19

By Iran’s own estimates, a total of 7.7mn ‘tourists’ visited Iran in the last Persian year (March 2018-March 2019), a rather higher figure than the WTTC estimated.
Mounesan explained the upward trend in the tourism industry as a result of Iran diversifying its travel and tourism services by, for instance, promoting health and cosmetic surgery tourism, as well as religious tourism.
9.1.11 ​Metallurgy & mining sector news
Exports of Iranian ore to China sink after Tehran slaps on tariffs
Consignments of Iranian iron ore shipped to the world’s biggest steel maker, China, have reportedly fallen over August and September because of export tariffs added by Tehran.
Iran exported 319,920 tonnes of iron ore to China in August, 37.8% down month on month and 23.4% lower year on year, according to Reuters calculations based on vessel-tracking and port data compiled by Refinitiv. In September so far, China has taken 129,534 tonnes of iron ore from Iran. Earlier this month Iran announced exports of all steelmaking raw materials would be hit with a 25% tariff as officials sought to ensure demand was met in the domestic steel industry, Iranian state-backed media outlet Press TV reported on September 9.
“Not many traders buy iron ore from Iran because of the US sanctions,” Zhao Yu, an analyst with Huatai Futures, told Reuters, adding that the freight charges were also high.
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.
According to the new report, the country is located between Brazil (ninth place) with 14.02 million tonnes and Italy (11th place) with 10.47 million tonnes.
56​ IRAN Country Report​ November 2019 www.intellinews.com