According to the International Iranian Stone Exhibition, considering the country's capabilities and capacities in the field of construction stones, experts emphasize that the only way to save and develop Iranian stone is to focus on export prosperity. What is the situation of Iran in the stone sector, where do we stand compared to other countries, what measures should we take to develop exports, etc. These were the questions we discussed with Siamak Haj Seyed Javadi, researcher and analyst of global stone markets. You can read the text of this conversation below.

What is the current situation in Iran in terms of stone exports?

Iran is one of the largest leading producers in the stone industry in the world. Global statistics say that Iran will produce nine million tons of construction stone in 2018, and domestic statistics estimate this amount at thirteen million tons. Of this production volume, 425. 1 million tons of stone have been exported in the form of cut or processed. With these interpretations, Iran is considered one of the largest producers of building stone. Our country imports 972 thousand tons of building stones, equivalent to 8. 10%, with a tariff of 2515 (international customs tariff for raw blocks and slabs of limestone or marble) and 480,000 tons of stone (considering about one million tons of cobblestone for processing export products ) Has been issued with tariff 6802 (customs tariff for processed stones). According to these conditions, it can be said that Iran has allocated approximately two million tons of the nine million tons of stone produced according to global statistics to exports, which is only twenty-two percent of the country's total products and more than seventy-eight percent of its production in the domestic market. Has used.

In this case, what is the situation of Iran in comparison with other countries in the field of stone exports?

I am referring to Turkey in this regard. In 2018, Turkey is known as one of the leaders in the stone industry in the field of global production and exchange, with a production of 12 million tons and an export of approximately 7.5 million tons of crushed and processed primary and final stones. The export of 5.5 million tons of these stones has been done with tariff 2515 (international customs tariff for block and raw slabs of limestone or marble group). Also, the export of processed stone with tariff of 6801 (customs tariff of processed stones of special and special dimensions), 6802 (customs tariff of processed stones) and 6803 (customs tariff of processed stones of slate type) was 345.2 million tons. Nearly 5 million tons of cobblestone has been used to produce 345.2 million tons of rock. Thus, it can be said that in practice, Turkey has allocated more than 80% of its production stone to exports. 50% of this amount of export is with tariff 2515 (international customs tariff for block stones and raw slabs of limestone or marble) and the rest is 5.37% spent on processing. Thus, the country has consumed only about 5.22 percent of its production stone in domestic markets. Both Turkey and Iran are among the world leaders in terms of production, especially in the group of marble limestone. Turkey spends 80% of its production in the form of simple and final cuts and processed products, while Iran's exports in this area are only 22%. On the other hand, Turkey consumes about 20% of its production domestically, while this figure reaches 78% in Iran. Turkey is a country that exports four times its domestic consumption of stone, but Iran accounts for approximately a quarter of its domestic consumption. This means that the consumption of stone in Iran is approximately 4 times that of Turkey and the domestic market is very strong and consumes much more than Turkey.

What do you think is the reason for this big difference between the two neighboring stone producing countries?

Given such statistics, the structural differences between the two countries should be noted. If Iran wants to reach Turkey's export ceiling, it should optimistically increase its ore production capacity to 17 million tons. According to reports provided by experts and managers of the Ministry of Industry, Mines and Trade, the potential capacity of the country's stone mines with more than 2,000 units is about 30 million tons, of which more than 900 mines are inactive. It is predicted that 1100 active mines will have an approximate production capacity of 5.16 million tons of stone, while at present only 9 million tons of stone will be produced. In the meantime, if we double the capacity of active stone mines in the country Or activate inactive mines, we can achieve a capacity of 16 million tons. This is achieved through long-term strategic planning, investment and focus on suitable mines and export development. To achieve this, we need short-term plans, predetermined goals, infrastructure and strategic, specialized and experienced management. International Customs of Blocks and Marbles of Limestone or Marble Group) and 2516 (International Customs Tariff of Blocks and Slabs of Silica Group) and Granite up to 3 million tons with Tariffs of 6801 (Customs Tariff of Processed Stones of Special Dimensions) Customs of processed stones) as a special and final processed is required; Otherwise export development is impossible. Iran's final processed stone export statistics with tariff 6802 (customs tariff of processed stones) were not provided except in 2018 due to low volume, but it can be predicted that the statistics in this area were much lower than the 2018 export figures. If we consider the slope of the export of processed stone with the slope of the export of tariff 2515 (International Customs Tariff of raw stones and slabs of limestone or marble group), we can refer to very approximate statistics. The approximate estimate of Iranian and Turkish processed stone exports in different years with tariff 6802 (customs tariff for processed stones) is as follows: this statistic in Turkey in 1995, 2000, 2005, 2010, 2015, 2016, 2017 and 2018. Respectively 123, 390, 1281, 1677, 2047, 2046, 2209, 2345 thousand tons per year and in Iran in the same years 11, 53, 180, 230, 230, 300, 450 and 480 thousand tons per year are estimated. Iran's cobblestone exports fell sharply in 2010 due to a 70% toll, however, in this interview, based on our approximate estimates, we consider the exports of processed ores with a positive outlook according to 2015 statistics.

What is the value of Turkish stone exports compared to other global competitors?

Turkey has exported about $ 944 million worth of stone since 2018, which is estimated at an average of $ 187 per ton based on tariff 2515 (International Customs Tariff for Blocks and Marble Group). Considering that the export of processed stones to Turkey is about 4. It is 5 million tons. It can be said that the added value of each ton of stone is about $ 210. This amount was approximately 12% more than the value added of the country's cobblestone exports. If Turkey could export 5.4 million tons of processing stone in the form of cobblestone, its export volume would reach 88% of its production, while this will not be possible for this country for several reasons; First, the importer of Turkish cobblestone is mainly China. China is about 80 percent Jupiter and India Jupiter is about 9 percent Turkish. In total, it can be said that 89% of Turkish stone exports to these two countries are done with a tariff of 2515, and they never buy processed stone from Turkey. Second, the countries that have bought processed stone from Turkey, including the United States, Saudi Arabia and France, are the countries that do not buy unprocessed stone with tariff 2515 (international tariff on block limestone or marble slabs). One of Turkey's strategic strategies. In entering the processed stone markets and gaining the share of other competitors in the global markets, the policy of low export price is applied. Turkey is one of the countries with the lowest export prices of stone in world markets.

What steps should Iran take to develop stone exports?

Since 2015, in Iran's export development plans, the export target of building stones has been set at about $ 2 billion per year. This speech was also made by the strategic managers of Iran's stone industry and the Ministry of Industry, Mines and Trade. According to the statistics provided, it can be said that this is not easily possible and it is necessary to increase the annual production of the country's mines to 17 million tons, at least double the current nominal production of the country, make the necessary investments in mines and processing plants. Development and support of business units, structural changes, marketing and marketing. In world markets, achieving this volume of exports, which is in close competition with major competitors, especially Turkey, which is Iran's largest competitor in the group of limestone or marble, is a very difficult but operational and feasible task. We need to know that this is not possible in less than 15 years. Of course, Iran's geopolitical issues and limitations and sanctions are the biggest obstacle in our way of achieving this.