About the report
Industry reports have been compiled since the early 20th century by organizations, research firms, and trade associations of various industries, with the aim of collecting reliable data and providing data-driven approaches as a key pillar of informed business decision-making.
The function of industry reports has evolved over time; reports produced by leading management consulting firms such as McKinsey, Boston Consulting Group, and Bain serve as the industry’s go-to source for accurate data and operational experience, accurately reflecting the pulse of the industry.
Collection of reports IndustrialistThe industry-specific data chapter is one of the main centers for publishing industry-specific data. The first series of these reports provides an overview of seven key industries in Iran and includes four main sections: (1) An overview of Iran’s macroeconomics, (2) General industry statistics and trends, (3) Export statistics, and (4) Top players.
To download Full text of the report Click.
A look at Iran’s macroeconomics
The share of agriculture and industry (excluding oil and gas) in GDP remained stable at around 6% and 25%, respectively, during 2011-2012, and during the same period, Iran’s services sector grew at a CAGR of 3.5%, while oil and gas declined at a CAGR of 3.8%, reducing the share of services to half of GDP. After 2020, Iran’s economy grew slightly, with the main burden (62%) being growth in the services sector.
Among the main sectors of GDP, between 2011 and 2022, the highest compound annual growth rates were in services (4%), agriculture (2%), industry and mining (1%), and oil and gas declined at a rate of -4%.
Financial intermediation, transportation, and real estate have been the main drivers of service sector growth, likely due to their immunity from international volatility as well as the high growth of the digital economy.
Between 2018 and 2022, the total volume of Iran’s non-oil exports increased at a compound annual growth rate of 1%, but at the same time, the total value of exports grew at a rate of 5%.
General statistics and trends in mining and base metals
This report includes two sections: mining and basic metals.
Mine
In 1400, more than 6,000 industrial workshops with about 130,000 employees produced more than $11.9 billion and created $9.5 billion in added value.
From 2020 to 2021, the mining sector experienced a 1% growth in the number of mines, 5% in employees, 13% in production value, and 1% in investment.
Iran’s mineral production has grown by 40% from 2012 to 2021, and its production value has more than doubled.
The numbers for 1401 and 1402 are estimated based on the compound annual growth rate (CAGR) between 1391 and 1400.
Mineral production has grown significantly since 2019, with the value of production more than doubling between 2019 and 2021.
In the minerals section, 3 products have been examined: iron ore, copper ore, and aluminum (bauxite).
The annual production of copper ore, iron ore, and aluminum (bauxite) increased from 1391 to 1400 at a compound annual growth rate of 13%, 11%, and 0%, respectively.
With a simplification and assuming the same initial investment, investing in the copper ore mining industry is more sustainable and cost-effective than the iron ore industry.
Assuming the initial investment of each is equal, one dollar invested in copper ore mining can create one and a half times the added value of the same amount invested in iron ore.
In terms of reserve volume, the copper ore mining industry can operate approximately 2.5 times more than the iron ore mining industry.
Total investment in the iron ore industry was three times that of the copper ore industry, and this gap has widened over time, so that in 1400, investment in iron ore was five times that of copper ore. There may be a need to review investment policies in the mining sector, because in terms of investment returns, we have witnessed investments in industries with lower returns.
Base metals
In 2020, more than 30,000 industrial workshops with about 1.9 million employees produced more than $141 billion and created $44 billion in added value.
Basic metals production accounts for 9% of total manufacturing workshops, 10% of the industrial workforce, 20% of production, and 29% of investment compared to total industrial workshops in 2020.
The value added and production value of basic metals increased at a compound annual growth rate of 36% between 2011 and 2021.
The numbers for 1401 and 1402 are estimated based on the compound annual growth rate (CAGR) between 1391 and 1400.
Although the production of basic metals and the added value of this industrial activity tripled between 2011 and 2018, the ratio of these two variables remained constant, which could indicate a lack of innovation and efficiency in this industry.
Export of minerals and basic metals
The value of mineral and metal exports increased at a compound annual growth rate of 9% between 2018 and 2022, while the rate for export volume was -4%.
Considering the difference between the volume and value share of export destinations for minerals and metals in 1401, it seems that Türkiye and China are more attractive destinations than Iraq.
Turkey was a relatively expensive importer of Iranian mineral products in 1401, due to its significantly higher share in export value (16%) compared to its share in volume (3%).
China, Iraq and Türkiye increased their value share from 45% to 60% without a significant change in their volume share.
The value of Iran’s mineral exports experienced a 9% decline from 1400 to 1401, the main reason for which was the decrease in exports to China, an issue that can be examined in more detail.
Exports to Türkiye have grown significantly since 2019, increasing from $594 million in that year to $2.04 billion in 2022.
China’s export volume has witnessed a significant decline of 42% between 2018 and 2022, especially from 2019 to 2020.
Top players in mining and base metals
The Industrial Management Institute (IMI) began ranking Iran’s top companies in 1998, and its latest edition was published in January 2023, covering the performance of 2021.
The main purpose of compiling the IMI1500 ranking is to determine and rank the level of participation of companies in the national economy, in order to promote transparency and competition in the business environment and generally improve the position of Iranian enterprises. This comparison and ranking is based on financial information published in the companies’ financial statements.
The economic effectiveness of a company’s activities at the national level is directly related to its sales volume.
The Institute of Industrial Management ranks companies by considering seven main indicator categories, each of which includes specific and precise indicators:
According to IMI-500 (version 1401), the top four players active in the mining and basic metals industry are Mobarakeh Steel, National Iranian Copper Industries Company, Golgohar, and Khuzestan Steel.
