CEMENT
Iran additionally ranks as one of many world’s largest cement producers. Its annual output of 70 million tonnes is essentially exported to neighbouring international locations. Iraq has traditionally been the principle purchaser of Iranian cement. Subsequent in line are Kuwait, Afghanistan and Syria.
Iranian cement output was already constrained earlier than the battle by home gasoline shortages and electrical energy rationing. Exports of clinker, the principle constituent of cement, had been down 17 per cent in 2024 in contrast with the earlier yr. Throughout the 2024 summer season energy disaster, 70 per cent of cement kilns additionally halted operations.
Dependable wartime figures are usually not but obtainable, however the strikes on Iran’s gasoline infrastructure have worsened the feedstock drawback. Momentary suspensions of port operations, as occurred within the southern Iraqi metropolis of Basra in March following assaults on two tankers off the coast, have additional hampered Iran’s skill to export cement.
In the meantime, Iraq and Kuwait face a double bind. As Iranian cement provides tighten, each international locations are dropping the means to compensate. Iraq ships 97 per cent of its power exports by means of the Strait of Hormuz and Kuwait 100 per cent. Each have shut down manufacturing.
The collapse in state income is straining infrastructure budgets in these international locations. So even the place various provide exists – from Turkey, Pakistan, Saudi Arabia and the UAE – Iraq and Kuwait lack the fiscal capability to soak up the upper prices.
For years, a lot evaluation of Iran has centered on the nation’s isolation. However, in actuality, Iran is concerned in provide chains everywhere in the world – from meals to chemical substances and constructing supplies. The conflict has made this abundantly clear.
Farhang Morady is a reader in Worldwide Growth on the College of Westminster. This text first appeared in The Dialog.
