Azerbaijan Exports Iron Ore at a Price 2.5 Times Lower than the World Price

The production of iron ore concentrate and iron ore in Azerbaijan continues to decline. In this case, the global iron ore market also shows a negative price dynamics.

According to the State Committee of Statistics, in the first 10 months of 2014 the Dashkesan Ore-Processing Plant produced 73.8 thousand tons of the raw materials, which is 26% less than in the same period of 2013. At the beginning of November the warehouses of the enterprise accumulated 42,000 tons of the finished products.

Currently, iron ore concentrate is offered at about $ 70 per 1 ton in the world market. It is noteworthy that this year the average world price of this raw material is not less than 88 USD per ton, while on the border of the Azerbaijan ore was declared at a price no higher than $ 35.

It is noteworthy that the National Statistical Office of Georgia told Turan that each of the 9,800 tons of Azerbaijani iron ore (January-September 2014) was bought for $ 54.89. However, Azerbaijan declares supply of exactly 1 000 tons more to Georgia at the price of $ 34 / ton. This is 2.5 times lower than the world prices.

In general, this year the Dashkesan Combine of CJSC Azerbaijan Steel Production Complex has exported 60,800 tons of non-agglomerated iron ore. Panama was listed as a country that buys 50,000 tons of this production at $ 34.5 per ton.

Iron ore production in Azerbaijan amounted to 214,300 tons in 2011, 207 300 tons in 2012, and 141 400 tons in 2013.

As Turan previously noted, in early 2014, iron ore prices kept slightly lower than $ 130 per ton, at the lowest level since July 2013. In 2013, a ton of ore was declared on the Azerbaijani customs at an average price of $ 29, and the year before - $ 26.3. Perhaps, corruption plays a role in this phenomenon. --08B