Iranian iron ore pellet exports up sharply

Iran iron ore pellet exports increased more than seven-fold to reach 2.78mn t in the Iranian year ending 22 March, driven by a cut in iron ore pellet export duty to 5pc from 15pc in July last year.

Tehran cut the export duty with a view on driving exports amid strong global demand and high premiums in the seaborne market.

Iran exported 5.52mn t of concentrate in the same period, up nearly five-fold on the year, on the back of strong Chinese demand.

But the country's exports of iron ore fines and lumps was down by 53pc on the year to 8.85mn t, dampened by a hike in export duty to 10pc from 5pc. Exports are typically centred on high grade material but sulphur and phosphorous levels have been noted as areas of concern.

China imports an estimated 94pc of Iranian iron ore, with US sanctions doing little to deter trade. The domestic market accounts for 4pc and the remaining 2pc is shipped to India and other countries including Turkey, Egypt and GCC members.