TEHRAN- Petrochemical production in Iran has risen nine percent since the beginning of current Iranian calendar year (March 21) compared to the same period of time in the past year, according to Ali-Mohammad Bossaqzadeh, the production control director of National Petrochemical Company (NPC). The official put the country’s petrochemical output at 31 million tons since the start of this year, […]
TEHRAN- The first Iran-Germany trade center was opened in Tehran on Thursday under the supervision of Iran-Germany Joint Chamber of Commerce, the portal of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) reported. The center seeks ease of mutual trade relations between the businessmen of the two countries, the report said. A new chapter has been opened in Iran-Germany […]
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TEHRAN – Iran’s four main Asian oil buyers increased their crude imports from the country in September to their highest level since March, boosted by a surge in purchases in China and South Korea, Reuters reported citing government and ship-tracking data. Iran’s top four Asian oil customers imported nearly 5.1 percent more oil from the country in September this year […]
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TEHRAN – South Korean Ambassador in Tehran Kim Seung-ho said Iran-South Korea Joint Economic Committee meeting is slated to be held within a month in Seoul. Speaking to Tehran Times on the sidelines of the 23rd Press Exhibition on Sunday, the ambassador said holding the Joint Economic Committee meeting will accelerate the two countries economic cooperation and also Korean companies’ […]
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TEHRAN- According to an official from Trade Promotion Organization of Iran (TPO), Iranian companies signed $465 million of contracts on exporting technical and engineering services during the first half of the present Iranian year (March 21– September 22, 2017), IRNA reported on Monday. “The figure shows 1,000 percent growth, in comparison with the same period in the preceding year,” Mahmoud […]
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TEHRAN – Yukiya Amano, director of the International Atomic Energy Agency, held talks on Sunday with Iran’s nuclear chief Ali Akbar Salehi. Amano who arrived in Tehran late on Saturday plans to hold talks with President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif. Amano’s visit comes amid U.S. President Donald Trump’s inflammatory remarks against the July 2015 nuclear deal […]
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TEHRAN- South Korea will construct a dam in west of Iran, South Korean Ambassador to Tehran Kim Seung told IRIB news in an exclusive interview. The dam with a height of over 300 meters to be built on Bakhtiari River in Iran’s western city of Khorram-Abad through cooperation of South Korean companies will be one of the tallest dams in […]
The technically detailed nuclear deal is working and there is no reason to change its terms, the EU official says Helga Schmid, the secretary general of the European External Action Service, has said that the 2015 agreement on the Iranian nuclear program is working and there are no reasons to change its terms and conditions. The agreement is a very […]
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TEHRAN – Ayatollah Ali Khamenei, Leader of the Islamic Revolution, said on Wednesday that it is a “waste of time” to respond to the insults against Iran by U.S. President Donald Trump. “I do not want to spend time to answer the foul-mouthed president of the U.S.” the Leader told a number of talented students. “It is a waste of […]
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In terms of amount of coal reserves, Iran is one of the richest countries in the Middle East and it could be a good opportunity for Iran to use this advantage however it has not been honored properly and the reason lies in lack of appropriate technology and innovation since this industry consists of exploration, extraction and processing and these are not highly developed in Iran, of course, after JCPOA, the obstacles are expected to be removed and JCPOA provide the base for attracting foreign investment and by investment in this field upgrading to up to date technologies would be achievable easier. During the last few months, great financing agreements between Iran and China and also Iran and South Korea has been signed in which coal industry is in list of priority to invest. Low quality of products, pricing fully by the authority and monopolistic market are main obstacles in flourishing this industry. Recently, Ministry of Industries, Mining and Trade of Iran enforce a new pricing method for coal in order to attract investors.
Iran’s coal proved reserves are near 1.1 billion tons and probable reserves are around 7.1 billion tons, which around 72 percent of this is coke coal and the rest is thermal coal. These rich reserves place Iran in twelfth rank among other countries with possessing more than 2.1 percent of all global reserves. Number of coal mines is exactly a hundred out of 5,355 of all kinds of mines in Iran according to 2014 national census data. Based on this data, more than 55 percent of all reserves are in Tabas, a city in Southern Khorasan province that contains 28 coal mines. Although Tabas is very rich in thermal coal, extraction from its mines is insignificant and it mainly exports to Turkey and Eastern European countries directly because there is no internal consumer due to cheaper oil and gas. Fortunately, Iran plans to build its first thermal power plant which will be fed by thermal coal because of its new strategy for diversification in energy portfolio. Following figure illustrates amount of coal concentrate produced during the last few years, which clearly shows steady growth after dramatic plunge in production began in 2008.
Almost all produced coke coal is consumed in process of steel production and provide the demand of steel makers with blast furnace approach, which the only consumer in Iran is exclusively Esfahan Steel Co. Regard to this monopolistic power of sole consumer and governmental support for this steel producer, price of coke coal is always under control and determine by IMIDRO. As figure shows, the price of coal of Negin Tabas Co, which is traded in Tehran Stock Exchange with tick of TBAS1, is almost steady during the last five years whereas world price faced fluctuations. The figure also depicted lower price of local producer in compare of world prices that is mainly because of lower quality of internal production. Last month, during a meeting between the Minister of Industries, Mining and Trade of Iran and coal committee, new pricing method presented but still there is a major ambiguity in pricing. According to this new method, coal price determined 27 percent of steel billet but the kind of coal is not defined certainly. This kind of pricing has been precedent in iron ore concentrate, which is 13 percent of billet price.
In the table below, capacity and production of three main companies which produce coal in Iran and are traded in Iran Stock Market has been shown.
Considering ambitious plan in Iran`s steel industry in order to reach 55 million tons production in 2025, blast furnace steel production capacity must reach to 6 million tons from the current 3.5 million tons. This would not be practical unless production of coking coal and coal concentrate increase to 3.2 and 4.5 million tons respectively, which current output of coal concentrate is near three million tons. Additionally, projected plans in coking units will increase demand for coal after they become operational in near future.
To wrap it up, deprived coal industry experiences new conditions and needs further attention. Although new pricing method do not change coal price significantly, it is a step forward to rescue from unfair pricing. Magnificent prospect of steel industry due to 2025 vision plan in Iran and new strategy in diversification of energy portfolio call for revolutionary reforms, massive investment and new technologies in coal industry.
The Consumer Price Index (CPI) decreased 0.1 percent in the month of the Iranian year “Tir” (ending July 22). The inflation rate has advanced 10.3 percent over the last twelve months.
Summary Results of the CPI for Tir (July 22)
The food and beverages index turned down 1.5 percent in Tir, largely due to the decreases in the indices for fresh fruits by 15.0 percent, ground vegetables 7.0 percent, leafy green vegetables 2.6, and egg 2.8 percent.
The index for tobacco decreased 0.5 percent in Tir, largely due to the declines in the indices for imported cigarettes by 0.6 percent and domestic cigarettes 0.3 percent.
The clothing and footwear index increased 0.2 percent, mostly as a result of the increases in the indices for clothing materials by 0.8 percent, footwear 0.6 percent, and tailoring, cleaning and laundering wage 0.5 percent.
The housing, water, electricity, gas and other fuels index went up 0.5 percent which was attributed to the advances of the indices for rental equivalence of owner occupied houses, and rent of residential houses each by 0.5 percent, and maintenance and repair services of the dwelling 0.8 percent.
The furnishings, household equipment and routine household maintenance index rose 0.6 percent, largely due to the increases in the indices for furniture and furnishings, carpets and other floor coverings by 1.1 percent, glassware, tableware and household utensils 0.7 percent, goods and services for routine household maintenance 0.5 percent.
The index for health increased 0.4 percent, mostly as a result of the increases in the indices for “medical, paramedical and dental services” and “medical products, appliances and equipment” each by 0.5 percent, and hospital services 0.2 percent.
The transport index went up 0.7 percent in Tir that was principally attributed to the increases in the indices for transport services by 2.1 percent, and operation of personal transport equipment 0.3 percent.
The index for communication went up 0.1 percent, mostly as a result of the increase in the index for telephone and telefax equipment by 0.5 percent.
The recreation and culture index rose 0.7 percent in Tir, largely due to the increases in the indices for package holidays by 2.1 percent, recreational and cultural services 1.7 percent, other recreational items and equipment 0.4 percent, and stationery 0.8 percent.
The education index advanced 0.2 percent over this month, mostly as a result of the increase in the index for supplementary courses tuition fees by 1.6 percent.
The index for restaurants and hotels rose 1.4 percent, mainly due to the advances in the indices for accommodation services by 2.6 percent and food away from home 1.1 percent.
The miscellaneous goods and services index increased 0.7 percent in this month.
Increases in the indices for personal care by 0.8 percent and goldsmith wage 0.1 percent were the major reasons for this rise.
One of the main commodities in petrochemical industry is urea. The most common way of producing urea is Haber process which includes combining nitrogen in the air with hydrogen in the natural gas. Producing 1 ton of urea needs 0.58 ton ammonia and 0.78 ton carbon dioxide. Most urea produced in the world is solid and in the form of granola, crystal and prilled urea. Nitrogen-based fertilizers are about 60% of global fertilizer’s consumption. Given that the soil can’t hold nitrogen for a long time, farmers should order nitrogen-based fertilizers on annual basis. Therefore, increasing in global demand for food is one of the basic factor determined demand for urea. Development plans, change in population and consumption patterns and the price of feedstocks like natural gas and coal are among other effective factors on urea’s pricing.
Global urea capacity and historical trends of demand and supply are shown in the following:Source: www.ihs.com/index.html (2016) Source: www.fertilizer.org
The main global players of urea industry are China, India, United States and Russia.
The biggest exporters are Russia and West Asian countries. Qatar, Ukraine and Saudi Arabia with shares of 4,341,000 tons, 3,567,000 tons and 6,062,000 tons respectively, provided about half of the world needs for urea in 2016, while Russia with export of 5,269,000 tons is on the top of urea exporting countries’ list around the world.
The main urea producers are mostly the biggest consumers at the same time. China, India, United States, Brazil, Pakistan and Indonesia can be as samples of this quote and that is mainly because of the countries’ strategies in the field of decreasing urea import and increasing their production capacities.
Top Ten Players in Urea Industry (2016)Source: www.worldbank.org
It should be noted that natural gas is the major feedstock of nitrogen-based fertilizers. Rapid rise of shale gas production in United States on one hand and reduction of natural gas price in that country on the other hand, have impressive effects on chemical fertilizers pricing. Since China is the biggest urea producer and 80% of Chinese urea companies have coal-based production line, fluctuations of coal prices beside natural gas prices can influence urea as well. The trends of mentioned factors in a period of 10 years are shown in the chart below:Source: www.indexmundi.com
Iran is one of the biggest urea producers and exporters with capacity of 9,766,000 tons per year. According to the ministry of agriculture’s data, about 70% of production is being exported annually. Some information about main urea producers in Iran are shown in the table below:Source: www.codal.ir *In nominal capacities it is assumed that all development projects will be launched successfully **2016 ***N/A
To sum up, urea like the other commodities is faced with political and economic uncertainty. It is expected that urea industry will follow the trend of large Canadian companies such as PotashCorp and Agrium. Generally, urea market seems to keep its current level of price because of expecting increase in demand of European countries, Unites States and Latin America because of supply shortage in these regions on one hand and India’s returning back to the market as we are getting closer to planting season on the other hand. It should be noted that, Iran can become the biggest urea producer in the region in near future and can compete with other major players and it is mostly depends on completion of different development plants by the companies.
The price of copper has soared to its highest level since mid-2015 on strong economic data released from China – the world’s largest red metal importer – along with reports that China may put restrictions on imports of some scrap metal, including copper, from the end of 2018.
China’s GDP released last week, reading of 6.9% YoY in the second quarter of 2017, coupled with a growth in retail sales by 11% YoY in June which were all above economists’ median forecasts.
Adding to above, more than expected improvement in consumer confidence in July was reported. Moreover, some reports have been announced that the recycling branch of China plans to ban imports of scrap metal, including copper, according to Reuters. In response to this news, the copper price rocketed to hit an almost 3-years high around $7,000 last week.
But the bullish price action stalled in front of the 50% Fibonacci retracement level at the end of the week, caused by liquidating long positions by investors, following the recent sharp move. With overbought market conditions, prices are currently pulling back and can retrace further although the market still remains bullish.
Copper seems to be positioned at a critical level right now after facing the tough and psychological resistance at $7,000. The weekly chart below offers supportive indicators which are going to be explained further in the following.
To resume positive momentum in copper, the price needs to fluctuate above the most supportive zone of $6,500, overlapping a strong horizontal support, coupled with %38.2 retracement ratio of 2011 to 2016 high-low. This area is also overlapped by %38.2 retracement of last year’s low to high move.
The Gravestone Doji candlestick pattern formed last week suggests downside pressure in near-term sessions as momentum oscillators such as stochastic has also signs of overbought conditions in short term. We should note that the continuation of the negative pressures caused by stochastic decline from the overbought areas will postpone the bullish overview.
From the market timing perspective, we expect the bullish momentum resumes anytime in near future, as the time cycle of the rally has not completed yet, and the market has faced intra-cycle resistance so far. We believe the rally starting from the early 2016, will continue to hit fresh highs around $8,000 (%61.8 Fibonacci retracement $10,000 high to $4,000 low) during next 5 months. This bullish scenario should be considered valid, as far as the supportive areas of $6,500 and $6,000 accordingly are held.
Tehran (ISNA) - Iran’s deputy foreign minister Majid Takht-Ravanchi has urged Europe to clarify how it will react if Washington abandons the multinational Iran deal and imposes news sanctions on the country.
Speaking at a conference in the French capital, Paris, on Tuesday, Takht-Ravanchi said that Tehran would not be the first party to withdraw from the nuclear accord, known as the Joint Comprehensive Plan of Action (JCPOA), but it has prepared itself for any scenario, Press TV reported.
He made the remarks after US President Donald Trump said he would not continue to certify Iran’s compliance with the terms of the JCPOA and kicked the issue to Congress.
Congress was given 60 days to decide whether to reimpose sanctions that were lifted under the deal, in exchange for restrictions on Iran’s nuclear activities.
Tehran (ISNA) – Iranian defense minister held a meeting with Pakistan’s Chief of Army Staff, discussing the expansion of bilateral cooperation in order to maintain and strengthen the defense base of the two countries.
During the meeting, Iranian defense minister Brigadier General Amir Hatami stated, “Respecting the territorial integrity and sovereignty of the regional countries is one of our main principles in foreign policy and on this basis, Pakistan’s security is our security”.
Referring to the regional and international developments, General Hatami considered the visit of Pakistan’s Chief of Army Staff General Qamar Javed Bajwa to Tehran as consolidating the stability, security and development of the bilateral relations.
Pointing to the attempts of some countries to destabilize regional security, divide the region and raise tension in it, he stressed that Iran's policy is to develop relations with neighbors.
He also considered the United States and the Zionist regime as the biggest and most dangerous supporters of terrorism in the region.
He stressed that unfortunately, some countries in the region and beyond have not abandoned their destabilizing practices and have fallen into the trap of American conspiracies and the Zionist regime, pointing out that they seek to divide the countries of the region and provoke unrest after the war in Afghanistan and Iraq and finding an advocate in Iraq and Syria and targeting Yemen.
He added that Iran's resistance against the implementation of the unjust agendas of Washington and the Zionist regime is the main reason for exerting pressure on Tehran and the Islamic Republic of Iran will employ all its capabilities to preserve the security of the region and the territorial integrity of countries.
General Qamar Javed Bajwa, for his part, said fighting terrorism and security chaos was a priority for Pakistan, hoping to establish security and stability on the borders of the two countries.
The unity of the countries of the region and of the Muslim world in the current sensitive circumstances has been a necessity for the establishment of stability and security
Tehran (ISNA) - Iran has held the first place in the field of handmade carpet exports, registering 23.8% growth during the last Iranian year (21 March 2016- 20 March 2017) and 13.3% during the first six months of this year.
The deputy director of Iran Carpet Center pointed out that Iran is the world's number one exporter of hand-made carpet as it is being technical, saying that today special attention must be paid to the technical and commercial dimensions of carpets.
“Following the signing of the nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA), we witnessed a growth in exports of Iranian handmade carpets, where we registered a growth of 23.8% in this regard during the last Iranian year and 13.3% during the first six months of the current Iranian year,” he added.
Tehran (ISNA) – Iranian President Hassan Rouhani sent a message to the new Prime Minister of New Zealand to congratulate her election.
President’s message is as follows:
In the Name of Allah, the Most Beneficent, the Most Merciful
Your Excellency Ms. Jacinda Ardern,
Honourable Prime Minister of New Zealand,
I sincerely congratulate your election as the new Prime Minister of New Zealand.
Wishing you success in carrying out this important responsibility, I hope that with regard to political will and attempts of the high-ranking officials of the two countries, relations further develop and deepen.
I wish your Excellency health and success and the people of New Zealand prosperity and felicity.
President of the Islamic Republic of Iran
Tehran (ISNA) – Iranian foreign minister Mohammad Javad Zarif reacted to Saudi Arabia’s hostile allegations and actions on Twitter.
Iranian Foreign Minister Mohammad Javad Zarif tweeted on Monday:
Visits to the belligerent #KSA have proved hazardous to regional health. Trump visit led to Bahrain repression followed by Qatar debacle.1/
Visits by Kushner & Lebanese PM led to Hariri’s bizarre resignation while abroad. Of course, Iran is accused of interference. 2/
#KSA bombs #Yemen to smithereens, killing 1000s of innocents including babies, spreads cholera and famine, but of course blames Iran. 3/
KSA is engaged in wars of aggression, regional bullying, destabilizing behavior & risky provocations. It blames Iran for the consequences. 4/
Tehran (ISNA) – Iranian President welcomed development and deepening of Tehran-Islamabad defense and military cooperation to consolidate stability and security in the region.
Iranian President Hassan Rouhani met with Chief of Army Staff of the Pakistan Army General Qamar Javed Bajwa and said, "The Islamic Republic of Iran is determined to have strong, brotherly and close relations with its regional neighbors, including Pakistan, and these relations are undoubtedly what the two nations want".
The depth of the relationship between the two nations has now gone beyond political relations between the two countries, he added.
"Given the will of the two governments of Iran and Pakistan to promote relations and cooperation between armed forces, cooperation can be promoted by developing training and joint maneuvers," he said, adding that the history of Iran and Pakistan's military and defense cooperation dates back to decades ago and today we are ready to develop these relations.
Mr. Rouhani also described terrorism and sectarian and ethnic disagreements as two main problems of the World of Islam today and emphasized the role of some powers in creating and reinforcing these problems and differences in the region.
"Powers do not have interest in unity and brotherhood among Muslims because if this unity and brotherhood is strengthened, then Islamic countries will be able to solve problems without the presence of outsiders," he said.
Referring to the two countries' common views on the need to maintain unity among Islamic countries, fight against terrorism and the role of some powers in creating these problems, the president said, "Iran-Pakistan cooperation can provide the context for greater unity among Islamic countries".
“Our goal is to strengthen relations between Islamic countries, and there is no doubt that disagreements between Islamic countries can be resolved through dialogue,” he continued.
President Rouhani also described improving security of the common borders of the two countries imperative and said, "The borders between Iran and Pakistan should be frontiers of friendship, development and tourism between the two nations, and we should not allow some terrorist groups promote insecurity in these borders".
The president said that Iran's goal in the region was to strengthen brotherhood and stability and unity among countries of the region, saying, "Terrorism is a problem for all countries of the region. Iran's presence in Iraq and Syria is aimed at fighting ISIS and other terrorist groups at the invitation of the governments of these countries, the positive results of which are now obvious for these two countries and the region; but the big question is that what is the purpose of military strikes, destruction and killing of the Yemeni people?"
Chief of Army Staff of the Pakistan Army also called Iran-Pakistan relations fraternal, deep-rooted and deep-seated, and insisted that Islamabad wanted to develop its military and defence cooperation with Tehran, along with historical and economic relations.
General Qamar Javed Bajwa said, "The people of Pakistan have consistently shown special respect to the Iranian people, especially because of their courage and resistance against powers and invaders, and we are determined to cement relations with Iran in all areas".
Referring to the spread of terrorism and takfiri extremism in the region, he called for an alliance between Islamic countries and said, "The disputes between some Islamic countries should be resolved at the negotiation table and Western countries should not be allowed to fan these disputes with the aim of selling their weapons".
Tehran (ISNA) – Iranian defense minister and his Iraqi counterpart in a phone call on Monday discussed the latest regional and international developments, stressing on further cooperation and efforts in fighting terrorism.
During the phone call, Iranian defense minister Brigadier General Amir Hatami congratulated his Iraqi counterpart Erfan al-Hiyali as well as the nation the recent victories against terrorism, hoping the restoration of peace and security to the warn-torn country.
General Hatami announced Iran’s readiness to help rebuild of Iraq with using all its capacities, stressing Tehran’s strong determination to further improve relations with Baghdad.
Referring to the safety of Iranian Arbaeen pilgrims in Iraq, General Hatami thanked Iraqi armed and security forces for their constant efforts to provide security for the pilgrims.
Erfan al-Hiyali, for his part, expressed hope over the expansion of defense cooperation between the two countries.
“We appreciate Tehran for supporting the Iraqi nation and government in fighting terrorism” he said.
At the end of the conversation, Erfan al-Hiyali invited his Iranian counterpart to visit Iraq.
Tehran (ISNA)-Iran’s foreign ministry spokesman has categorically rejected the recent anti-Iran accusations raised in a statement by the Saudi-led coalition against Yemen, calling such allegations “baseless, irresponsible, damaging, and provocative.”
Referring to years of Saudi aggression and war crimes against Yemeni people, Iranian foreign ministry spokesman Bahram Qassemi called the Yemeni response an independent one and a result of Saudis’ aggression which is not carried out or provoked by any other country.
“The Saudis, who have failed to achieve their evil goals during long-term military aggression against Yemen, are making more problems for their defeated coalition with a clumsy psychological operation to make baseless and totally false accusations,” added Qassemi in his Monday statement.
“Our friendly advice to them is to stop playing the blame game and levelling accusations against others, and rather halt their attacks on the innocent and defenseless people of Yemen as soon as possible, and pave the way for Yemeni-Yemeni dialogue and peace-making in that country.”
Tehran (ISNA) - The Chief of General Staff for Iranian Armed Forces General Mohammad Bagheri and Pakistan’s Chief of Army Staff General Qamar Javed Bajwa held a meeting on Monday.
The officials of the General Staff for Iranian Armed Forces have officially welcomed General Qamar Javed Bajwa who traveled to Tehran at the head of a high-ranking military delegation.
During the meeting, the two army chiefs exchanged views on various bilateral and regional issues.
They stressed on the need for expanding defense and security relations in solving common issues especially in identifying and countering factors that cause the spread of terrorism along the borders between Iran and Pakistan.
The army chiefs have also insisted on the need for expanding defense and security ties in the industrial, research and training fields.
Using the existing capacities in various international and regional communities, using the defense and political capacities in solving regional conflicts, and joint cooperation between Iran and Pakistan as the two big and powerful countries without foreign intervention were also among the topics of discussion in the Monday meeting.