Fifty percent drop in Iran's exports to China
Chairman of the Iran-China Chamber of Commerce: The prices of commodity products, including copper and iron, have fallen due to the closure of production lines in the world. And if we pay attention to all these issues, we will see that in the first four months of the year, our exports to China fell by 50% and our imports from China due to severe damage to other import bases grew by 3.5% compared to the same period last year. Has had before.
According to the International Stone Exhibition of Iran, Majid Reza Hariri, regarding the report of China Customs on the 40% decrease in Iran's trade with China, said: The quarterly statistics of trade with China show a 34% decrease and announce that this statistic is for four months. The year will not be a positive one either.
"This is a sign that two important things are happening in the country," he said. "The first issue is that the world is dealing with a problem called Corona, as a result of which international trade has generally declined." In the most optimistic case, the figure is about 15 percent, and in the worst case, about 25 to 30 percent.
Hariri continued: "In fact, trade between nations and countries has declined." At the same time, we are facing sanctions and the inability to sell oil. Just as oil was sold at a price of sixty dollars in the past, it has now reached one-third of that price. In other words, our oil connection with the world has been cut off and we have reached less than ten percent of oil sales under normal circumstances.
The head of the Iran-China Chamber of Commerce added: "Due to the thirty-five to forty percent connection of our oil relations with China, this amount has been more than ten billion dollars a year." Therefore, when oil is removed or minimized, its effect on Iran's relationship with China will be felt.
Hariri said: "On the other hand, our exports of more than fifty percent of our non-oil exports include oil products, including; Gases, condensate and petrochemicals are calculated based on the price base of oil. Therefore, if the price of oil falls, the price of these products will also fall. Therefore, the effects of the decline in petrochemical exports to the world and China in the coming months will be greater than other areas in export statistics.
He pointed to the role of 20% of non-oil exports such as; The price of these products has also fallen due to the closure of production lines in the world, said the commodity market, including copper and iron. Therefore, if we pay attention to all these issues, we will see that in the first four months of the year, our exports to China fell by about 50 percent and our imports from China due to severe damage to other import bases grew by 3.5 percent compared to the same period last year. Has had before.
Hariri stressed: "If this trend continues, the absolute value of our exports and the size of our global trade, as well as trade with China, will be greatly reduced, but its relative value (China in 2019 accounted for about twenty-five percent of our total exports and imports." Is) will reach more than thirty percent.
Regarding the impact of this event on the country's economy, he said: "If this trend continues in the world, in the coming months, when the effects of the lack of foreign exchange resources in the country will be severe, our trade will become smaller day by day."
* ILNA
