Iran Economy Weekly News”

Volume 137 “Iran Economy Weekly News”

Compiled by: Economic Section, Iran Embassy, New Delhi

Highlights:

 Iran showcases industrial goods in Baku  Launching Indonesia-Chabahar sea line to turn port to regional tourism hub  Indian investors ready for electrifying Tehran-Tabriz train  India, great trade opportunity for Iranian businessmen: Iran's envoy  Int'l Computer, Electronic, E-Commerce, Security Fair kicks off in Tabriz  Defense Ministry ready to meet demands of domestic automotive industry  India, great trade opportunity for Iranian businessmen: Iran's envoy  TSE to cooperate with Shanghai Stock Exchange  Iran trade minister in Shanghai for China Expo  Iran, Belarus keen on boosting relations in various fields  China Int'l Import Expo starts work with Iran's active participation  „32 European SMEs ready to enter Iran‟s oil industry‟  Number of knowledge-based participants in IEE 2019 rises fourfold  ICCIMA ready to set up trade offices abroad  Energy, labor ministries team up for $4.5b job creation plans  Saffron farms on northeast Iran; a new destination for agri-tourism  Number of tourists coming to Iran rise up by 50%  Armenia eyes expansion of electricity co-op with Iran

 Bank loans to economic sectors up 26% in H1  Trade between Iran, EU at nearly €3.5b in 8 months  Commodities worth $404m traded at IME in a week  NIOPDC to offer 20,000 tons of kerosene at IRENEX on Monday  Kish Island hosting intl. building industry exhibition  Iran, Iraq power grids synchronized  Iron ore concentrate output exceeds 17m tons in H1  Tehran hosting 2 intl. exhibitions  Exports of oil products to Iraq continues despite unrest: OPEX  Steel products output to reach 28m tons by March 2020  Iran to implement 2 power plant projects with Russians' participation  Kerman‟s economic, investment opportunities to be introduced to world

Reference: www.tccim.ir www.irna.ir/en/ www.tehrantimes.com www.mehrnews.com

07 November 2019

 Iran showcases industrial goods in Baku The international industrial exhibition focusing on Iranian products started work in Baku, Azerbaijan. The event is underway in the presence of 38 Iranian production and services companies, 10 firms from Azerbaijan, 1 from Russia, 4 from Pakistan, 1 from Georgia and 1 from Ukraine.

Speaking at the inauguration ceremony, Iranian Ambassador to Baku Javad Jahangirzade said the volume of trade exchanges between Iran and Azerbaijan has experienced 74% in 2018 compared with 2017. The figure has also had over 90% growth during the 10 months of the current year. He added that there are various capacities for developing cooperation between two countries Describing Azerbaijan as a suitable market for Iranian companies, he said they can have access to regional market through Azerbaijan. The exhibition will showcase petrochemical products, buildings, electricity, animal husbandry, agriculture, irrigation, home appliances, building materials, and health and engineering services. He also referred to Iran-Azerbaijan plan for creating joint industrial part at common borders.

 Launching Indonesia-Chabahar sea line to turn port to regional tourism hub Since the Indonesia-Dubai sea line is operating, establishment of Indonesia-Chabahar sea line can transform the southeastern Iran port into a regional tourism and transit hub. Deputy Head of Sistan-Baluchestan Cultural Heritage, Tourism and Handicrafts Department Mojtaba Mirhosseini told IRNA on Wednesday that Indonesian ambassador arrived in the province at the head of a delegation on a two-day official visit to explore ways for promoting economic and tourism cooperation. Examining capacities of Milak and Mirjaveh border terminals to help promote economic and tourism development, holding talks with Sistan Baluchestan governor general and activists of private sector are on the ambassador's agenda, he said. Holding the Tourism Ministers Meeting of the Indian Ocean Rim Association (IORA) will also be discussed during Indonesian ambassador's meeting with directors of private sectors' tourism firms, Mirhosseini said. Chabahar Port is located in the southeastern coast of Iran and is about 72 km away from Gwadar Port of Pakistan.

06 November 2019

 Indian investors ready for electrifying Tehran-Tabriz train Indian investors, visiting Rabe Rashidi of Innovation and Technology Exhibition (Rinotex), voiced their readiness for undertaking rail projects, especially electrifying Tabriz-Tehran train, said East Azarbaijan deputy governor general for coordinating developmental affairs on Tuesday. Javad Rahmati told IRNA on Wednesday, "If the investors accept risk of investment, we are ready for cooperation with them based on build-operate- transfer (BOT)." Commenting on the project to be undertaken by the Indians, he said that if it is implemented, the train will have a speed over 250 kilometers per hour. Then it will take less than three hours to travel from Tabriz to Tehran. He further noted that necessary studies on the investments should be conducted in near future. Foreign investors' affordability is examined by Foreign Ministry and Indian investors have obtained initial approvals, Rahmati said. Seventh Rabe Rashidi of Innovation and Technology Exhibition (Rinotex) opened on Monday and will continue until November 8.

 India, great trade opportunity for Iranian businessmen: Iran's envoy Iran‟s Ambassador to India Ali Chegeni said that India has a great potential to become Iran‟s trade partner in various fields. India has an area two times bigger than Iran and has a population of more than one billion people which is a big market for Iran, said Iran‟s Ambassador to India Ali Chegeni in northeastern Razavi Khorasan Province. He added that India‟s GDP has the biggest growth in the world while inflation is very low, making the country the world‟s third largest economy in 2025 after the US and China. Chegeni mentioned that there is a big boom in construction in India and that Iran is a paradise of construction materials for this Asian country. He noted that Iran‟s strategic Chabahar Port is the key to India‟s exports to Afghanistan, urging Razavi Khorasan Province to use the route as well.

05 November 2019

 Int'l Computer, Electronic, E-Commerce, Security Fair kicks off in Tabriz The 22nd International Computer, Electronic, E-Commerce, Security Equipment and Mobile Trade Fair started work in City of Tabriz, northwestern Iran on Tuesday. Representatives of China, South Korea, Japan and Taiwan attended the event. Different kinds of hardware, accounting, practical and store management software, tablets, notebooks, sim card operators, Wimax, internet services, scales, network services, closed circle camera, security systems, information technology, computer equipment, UPS battery, book and educational services were showcased. The exhibit will work in Tabriz international fairground until November 7.

 Defense Ministry ready to meet demands of domestic automotive industry The Minister of Defense Brigadier General Amir Hatami said on Tuesday that his ministry is a ready to meet all the needs of the domestic automobile industry and spare parts during sanction era. Brigadier General Hatami on Tuesday, elaborating on the situation in Iraq and Lebanon, noted that we always believe that the events that took place in these two countries are purely internal issues and must be achieved by the people of these two countries, and we hope that with the conscious participation of the Lebanese and Iraqi people, we will witness the safeguard of their security and stability, and the people can rely on the law to alienate the foreigners from any exploitation and insecurity. He added that over the past forty years, the global arrogance led by the US, through various conspiracies, tricks, gimmicks and hostilities, has spared no efforts to harm the sacred system of the Islamic Republic and national progress. Elsewhere the official stated that the defense industry has a broad and comprehensive relationship with scientific, academic and knowledge-based centers and it is currently attempting to maximize these scientific and national capacities to enhance defense capability.

 India, great trade opportunity for Iranian businessmen: Iran's envoy Iran‟s Ambassador to India Ali Chegeni said on Tuesday that India has a great potential to become Iran‟s trade partner in various fields. India has an area two times bigger than Iran and has a population of more than one billion people which is a big market for Iran, said Iran‟s Ambassador to India Ali Chegeni in northeastern Razavi Khorasan Province. He added that India‟s GDP has the biggest growth in the world while inflation is very low, making the country the world‟s third largest economy in 2025 after the US and China. Chegeni mentioned that there is a big boom in construction in India and that Iran is a paradise of construction materials for this Asian country. He noted that Iran‟s strategic Chabahar Port is the key to India‟s exports to Afghanistan, urging Razavi Khorasan Province to use the route as well.

04 November 2019

 TSE to cooperate with Shanghai Stock Exchange Tehran Stock Exchange and Shanghai Stock Exchange signed document on bilateral cooperation. According to public relations office of Tehran Stock Exchange, in a ceremony for signing the document which was held on the occasion of the 70th anniversary of establishment of the People's Republic of China, the Iranian and Chinese officials held consultations to get familiarized with capital market, opportunities and cooperation grounds. The MoU which was signed by both sides, prepares the ground for exchanging experiences and information on training courses, foreign investment, designing funds and bonds, developing infrastructures, promoting strategic structure, checking mechanism for information leaks and joint venture investments. Shanghai Stock Exchange has recently opened a museum of showcasing documents and historical works in stock exchange along with donations from other markets, including those of Tehran Stock Exchange. The Tehran Stock Exchange is Iran's largest stock exchange founded in 1967. The TSE is based in Tehran. As of May 2012, 339 companies with a combined market capitalization of US$104.21 billion were listed on TSE.

 Iran trade minister in Shanghai for China Expo Iranian Minster of Industry, Mine and Trade Reza Rahmani at the head of a high-ranking delegation arrived in Shanghai in southeast of China on Monday. In Shanghai, Rahmani is to take part in the second China International Import Expo (CIIE) slated for November 5. He is also to meet with different Chinese officials on the issues of mutual interests. Over 3,000 companies from 150 world countries including Iran attended the event. The CIIE will last for six days.

 Iran, Belarus keen on boosting relations in various fields Minister of Industries, Mines and Trade Reza Rahmani on Monday hailed Iran-Belarus relations in different spheres, saying that Iran is willing to import some of its needs from Belarus. Rahmani, who is currently in China to attend the inaugural ceremony of the Second International Exhibition of Shanghai Imports and hold talks with the Chinese officials, sat down for talks with the Belarusian Minister of Food and Agriculture Anatoly Khotko late on Monday. Highlighting significance of commercial and economic cooperation between the two countries, he said that they have the potential for enhancing ties in all fields. Referring to membership of Iran in Eurasia Union, he said that Iran's joining to the bloc provides a big opportunity for collaboration with all members of the union. Proposing export of cow meat and agricultural products from Iran to Belarus, Rahmani called for removing obstacles in the way of banking and financial collaboration. He put current commercial exchanges at $15 million, saying that given the two countries' capacities, they have the potential to develop cooperation in all fields. Belarusian minister, for her part, said that currently, the two countries have highest level of cooperation in agriculture and Iran is exporting fruits and dried fruits to Belarus now. Rahmani arrived in Shanghai late on Monday at the head of a high-ranking delegation for talks with the Chinese officials and visit the Second International Exhibition of Shanghai Imports. The event attended by 150 countries including Iran will open on Tuesday in a ceremony with Chinese President XI Jinping in attendance.

 China Int'l Import Expo starts work with Iran's active participation The 2nd China International Import Expo (CIIE) opened in Shanghai on Tuesday in presence of Iran Minister of Industry, Mines and Trade Reza Rahmani. Over 3,000 companies will participate in the event and more than 1,000 of them are to showcase their products in China exhibition for the first time. The exhibition is divided into three sections of countries, companies and economic forum. Some 64 countries and three international organizations have attended the exhibition section. In companies category, over 3,000 firms from 150 countries have attended to showcase new technology, car, equipment, medical tools, medicines, luxury household appliances, trade services, food and agricultural products. Some 15 Iranian companies have attended the event in China.

 Iran, Armenia discuss boosting energy trade Iranian Oil Minister Bijan Namdar Zanganeh met with Armenian Minister of Territorial Administration and Infrastructure Suren Papikyan on Sunday to discuss boosting gas exports to the country in return for importing more electricity, Shana reported. In the meeting, Zanganeh underlined the energy sector as the most important aspect of the Iran-Armenia‟s economic relations, saying that “exporting Iranian gas to Armenia in exchange for receiving electricity (bartering gas with electricity) is part of the cooperation between the two countries.” Iran and Armenia signed a gas-for-electricity barter deal in 2004, based on which, for a 20-year period, Iran would export gas to Armenia to be consumed by the country‟s power plants, and in return, Iran imports electricity from Armenia. Armenia started importing gas from Iran since mid-2009. Suren Papikyan visited Tehran on top of a delegation to attend the 19th Iran International Electricity Exhibition (IEE 2019). Earlier on Saturday, Papikyan had said that Iran could act as an electricity hub in the region to connect Armenia to other nations like Iraq. “Just as Armenia is a gateway for Iran's relations with Georgia and the Eurasian Union countries, naturally, Iran could also be a gateway for Armenia's greater connection with Iraq and other countries in the region,” he said.

Iran and Armenia have been cooperating for years in gas and electricity swap, and two-way economic and political ties have grown in tandem with an increase in trade.

 „32 European SMEs ready to enter Iran‟s oil industry‟ Head of Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA)‟s energy committee says 32 European small and medium-sized enterprises (SMEs) have expressed readiness for participation in Iran‟s oil and gas projects. “These companies are demanding guarantees from the Oil Ministry for cooperation with Iranian companies,” Reza Padidar told IRNA. According to the official, the companies are from Italy, Spain, Greece, Poland, Britain, Germany, the Netherlands and Romania. As reported, TCCIMA‟s energy committee has been negotiating with foreign delegations visiting the country in the past 18 months, which has resulted to a listing of 114 capable companies which could collaborate with Iranian counterparts in oil and gas projects. “Finally [of the mentioned 114 companies] 32 companies have announced their readiness for cooperation with us in the country‟s oil and gas projects and also for transferring technical knowledge as well as providing investment,” he said. Mentioning the companies‟ request for the Oil Ministry‟ guarantees, Padidar said that the issue has been raised with the Oil Minister Bijan Namdar Zanganeh and the Oil Ministry‟s Engineering, Research and Technology Department is to review the Iranian companies which are going to form partnerships with the mentioned European SMEs so that their activity could be guaranteed after approval. The official further noted that the payment for the companies‟ services will be done through Instrument in Support of Trade Exchanges (INSTEX) and most of the SMEs have also agreed on being paid in the form of bartering deals.

03 November 2019

 Number of knowledge-based participants in IEE 2019 rises fourfold Iranian Deputy Energy Minister Homayoon Haeri said the presence of knowledge-based companies in the 19th Iran International Electricity Exhibition (IEE 2019) has increased fourfold compared to last year‟s event. Speaking in the closing ceremony of the exhibition, Haeri emphasized the important role of knowledge-based companies in the country‟s exports of engineering services, saying “We need to have a clear strategy and planning in exporting power industry‟s technical services.” Mentioning the significant participation of various companies in this year‟s exhibition, the official noted, “The condition is currently ripe for focusing on the exports of technical and engineering services of the electricity industry.” According to Haeri, four major issues should be considered in strategic planning for exports of technical services in this area to obtain a better outcome. “The first is the convergence among the companies and firms from management and technical perspectives…. The second is technology innovation and this is the key to export success worldwide…. The third issue is knowing the target markets that is the target countries should be studied because each country has its own conditions and finally the fourth is formulation of a roadmaps in this regard,” he explained. The 19th Iran International Electricity Exhibition kicked off on August 31 at Tehran Permanent International Fairgrounds. According to the organizers, in this year‟s exhibition over 40 knowledge-based companies presented their achievements and services in the electricity industry.

 ICCIMA ready to set up trade offices abroad Head of Iran's Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Gholam-Hossein Shafei said the chamber is ready to establish five trade offices in five countries to boost the private sector‟s role in the national trade. Speaking in a meeting of Mashhad Chamber of Commerce‟s Trade Committee attended by Tajikistan ambassador, the official noted that neighboring countries would be the priority for this program and the first office is to be established in Russia.

“In the wake of Iran's joining to Union of Eurasian States, the first trade office will be set up in Russia,” Shafei said. Underling the fact that joining the Eurasian Union would be a good opportunity for the country, he said that the items which have been considered by the Eurasian Economic Union (EAEU) for trade between Iran and Eurasia should be thoroughly reviewed and assessed. He stressed the importance of boosting trade and economic relations with neighboring countries, saying, "In this path, we must move toward developing sustainable business relationships [with the neighbors]. Naturally, the role of Iranian ambassadors and attachés in neighboring countries is undeniable." "Given the successful experience of institutes such as Japan External Trade Organization (JETRO) and Korea Trade-Investment Promotion Agency (KOTRA) in boosting the countries' trade, we proposed the establishment of national trade offices to be able to promote the market for the Iranian goods," he said.

 Energy, labor ministries team up for $4.5b job creation plans The Ministry of Energy and the Ministry of Cooperatives, Labor, and Social Welfare have signed a memorandum of understanding (MOU) for implementing projects worth 192.81 trillion rials (about $4.59 billion) aimed to create 23,600 job opportunities across the country. The MOU was signed by Energy Minister Reza Ardakanian and Cooperatives, Labor and Social Welfare Minister Mohammad Shariatmadari on Saturday, IRIB reported. As reported by the news portal of the energy ministry (Paven), the projects will be carried out in cooperation with Tose'e Ta'avon Bank and Water and Wastewater Engineering Company as representatives of the two ministries. The projects are mainly focused on water and electricity management. Under the MOU, the National Development Fund will provide 9.5 trillion rials (about $226 million) of the needed fund for the projects and the rest will be provided by Tose'e Ta'avon Bank. The signing of the mentioned MOU marks the beginning of a mutual collaboration between the two ministries for increasing employment in the country with a focus on the issue of water management. Speaking on the sidelines of the signing ceremony, Ardakanian emphasized the importance of management in water and energy sectors, saying “Our country needs to pay more and more attention to both utility and consumption management in the water and energy industries.” “According to the MOU, signed today, besides directing employment, bank resources are also being used in the right way to boost production and to

contribute greatly to the management of water utility and consumption,” he said.

 Saffron farms on northeast Iran; a new destination for agritourism Iranian Saffron known as the “red gold”, saffron is a magical ingredient in Persian culture, from aromatic foods and colorful desserts, to the physical and spiritual medicine. The expensive spice has long been a high-demand commodity. Today, agritourism is regarded as a stimulus to the imbalanced economy of agriculture sectors and tendency for emotional and nostalgic roots of the modern world citizens and due to factors such as visit or participation in farm activities, direct purchase of products, spending a night at a farm, curiosity and learning about the farm and agriculture products has been able to create a wide target population. South Khorasan and Khorasan Razavi provinces in North East Iran with great agricultural potential in products such as barberry, pomegranate, and especially saffron and capabilities of different types of tourism such as Eco-Tourism, astronomy, geo-tourism and nomadic can be determine a certain space in agritourism. Khorasan Razavi and South Khorasan province provinces in North East Iran nowadays is the land of soft gold. It's in these beautiful and preserved natural landscapes that, each fall, during only six weeks, the fields are covered with a blanket of small and delicate purple flowers: the saffron crocus.

 Number of tourists coming to Iran rise up by 50% The number of tourists coming to Iran increased by 52% last year to about 8 million and the figure grew up by 27% in the first six months of the current Iranian year (started on March 20), MP Gholamali Jafarzadeh said. Gholamali Jafarzadeh said that according to official statistics, Iran's Tourism Development Document as well as the National Tourism Brand Document has been compiled, which will be unveiled the National Tourism Brand Document soon. ran ranks as the second fastest-growing country in terms of attracting foreign tourists, with 49% growth after Ecuador, according to a new report from the World Tourism Organization. Iran, which hosted a total of 4.867 million foreign tourists in 2017, in 2018 with a growth of 49.9% hosted 7.295 million foreign tourists and reached the 2nd

rank in the world's fastest-growing tourism, Ecuador is the fastest-growing country with 51% among the countries of the world in attracting tourists. Ecuador in South America has increased its number of tourists from 1.6 million to 2.6 million in the period from 2017 to 2018 and the increase in the world's fastest-growing tourism in Iran from 2017 to 2018 that earlier, in the period of 2016 to 2017 Iran's tourism growth was -1.5 %. Iran's tourism revenue for the year 2010 is reported at $ 2.438 billion, according to the report.

02 November 2019

 Armenia eyes expansion of electricity co-op with Iran Armenian minister of territorial administration and infrastructure said Iran could act as an electricity hub in the region to connect Armenia to other nations like Iraq, ILNA reported on Saturday. Suren Papikyan made the remarks during a visit to the 19th Iran International Electricity Exhibition (IEE 2019) in Tehran. “Just as Armenia is a gateway for Iran's relations with Georgia and the Eurasian Union countries, naturally, Iran could also be a gateway for Armenia's greater connection with Iraq and other countries in the region,” Papiyan said. Referring to the modern equipment and achievements presented by Iranian companies in the mentioned international event, he said “During the visit to the exhibition, we established very good connections with Iranian companies active in the industry, so after returning to Armenia this communication will continue in practical form.” Noting that Armenian companies welcome participating in the 20th Iran International Electricity Exhibition, he added, “Armenia as a major importer of energy carriers, is always looking for new ways to increase cooperation with other countries and to find new energy sources. We are looking forward to sharing experiences between the two countries by participating in this international event.” Iran and Armenia have been cooperating for years in gas and electricity swap, and two-way economic and political ties have grown in tandem with an increase in trade.

 Bank loans to economic sectors up 26% in H1 Iranian banking system has offered 3.821 quadrillion rials (about $90.97 billion) to domestic economic sectors in the first six months of the current

Iranian calendar year (March 21-Spetember 22), registering a 26-percent rise from the previous year‟s same period, IRNA reported. According to the data provided by the Central Bank of Iran (CBI), working capital loans paid to different economic sectors were above 2.11 quadrillion rials (about $50.26 billion) accounting for 55.3 percent of the total provided facilities in the said period. As reported, the total working capital loans provided in the mentioned time span, increased by 250 trillion rials (about $5.95 billion) or 13.5 percent compared to the figure for the past year‟s six-month period. During the said period, the country‟s mining and industry sectors received 862 trillion rials (nearly $20.5 billion) in the form of working capital loans, accounting for 40.8 percent of the total such facilities. Back in April, CBI reported that during the past Iranian calendar year (ended on March 20, 2019) the country‟s banking system offered 7.737 quadrillion rials (about $184.2 billion) facilities to domestic economic sectors to register a 26- percent rise from its previous year. Working capital loans paid to different economic sectors was above 4.319 quadrillion rials (about $102.8 billion) accounting for 55.8 percent of the total provided facilities in the said period, registering a 14-percent increase from the previous year.

 Trade between Iran, EU at nearly €3.5b in 8 months The trade between Iran and European Union countries during the first eight months of 2019 stood at €3.471 billion, Tasnim news agency reported. According to the latest data provided by the statistical office of the European Union, Eurostat, the trade between Iran and the EU nations has decreased by 75 percent compared to last year‟s same period in which the figure stood at €14.292 billion. As reported, EU‟s exports to Iran plunged nearly 50 percent in the mentioned period compared to the figure for last year‟s same time span. EU countries exported €2.994 billion of goods to Iran in the said time, while the figure stood at €6.198 billion in the last year‟s first eight months. EU‟s imports from Iran in the mentioned eight-month period also fell by 94 percent compared to the same period in the previous year, falling to €477 million. The EU imported €8.094 billion worth of goods from Iran in the first eight months of last year. The significant drop in EU trade with Iran in 2019, following the re- imposition of U.S. sanctions on Iran, shows that the EU has failed to defend Iran's interests in the context of the nuclear deal despite its promises. According to the European Union‟s statistics agency, the trade between Iran

and the EU stood at €2.56 billion during the first half of 2019. The figure shows 76 percent decrease from €10.67 billion in the first half of 2018. In May 2018, U.S. President Donald Trump formally pulled the United States out of the nuclear deal that was struck between Iran and world powers in July 2015. Following Trump‟s decision, in January 2019, France, Germany and Britain (known as the E3) introduced an Instrument in Support of Trade Exchanges (INSTEX) which was meant to facilitate legitimate trade between European economic operators and Iran in order to convince Iran to stay in the 2015 nuclear deal.

 Commodities worth $404m traded at IME in a week During weekdays ending up to October 31, while 440,084 tons of commodities worth over $404 million were traded at Iran Mercantile Exchange (IME), the trading volume and value experienced a growth of 58 percent and 18 percent, respectively. According to the report from IME International Affairs and Public Relations Department, last week, on the domestic and export metal and mineral trading floor of IME, 57,135 tons of various products worth close to $95 million were traded. On this trading floor, 52,708 tons of steel, 2,295 tons of copper, 2,000 tons of aluminum, 120 tons of molybdenum concentrates, 12 tons of precious metal concentrates as well as 22 kg of gold bullion were traded by customers. The report declares that on domestic and export oil and petrochemical trading floors of IME, 382,715 tons of different commodities with the total value of $327 million were traded. On this trading floor, 86,632 tons of bitumen, 206,300 tons of VB feed stock, 50,555 tons of polymer products, 13,500 tons of lube cut oil, 20,402 tons of chemical products, 666 tons of insulation, 3,013 tons of argon as well as 4,625 tons of sulfur were traded. Furthermore, 324 tons of commodities were traded on the side market of IME. On June 24, during the meeting of IME shareholders, IME Managing Director Hamed Soltani-Nejad said that this exchange has prepared ten macro plans to improve its performance during the current Iranian calendar year (ends on March 19, 2020). He mentioned development of underlying assets through existing instruments, development of financial instruments for commodity-backed securities, expansion of market size and depth, increasing cooperation with other

organizations, and strengthening IME brand as some of the mentioned macro plans. Soltani-Nejad has previously announced that IME accounted for 39 percent of the value of the total trades in the Iranian capital market during the past Iranian calendar year. He put the value of IME trades at 1.78 quadrillion rials (about $42.3 billion) in the past year. The value of trades at IME rose 52 percent in the past calendar year from its previous year. Over 24.84 million tons of commodities valued at 884.3 trillion rials (about $21.05 billion) were traded at the physical market of IME, showing seven percent fall in the amount and 77 percent rise in the worth of trades year on year. Applying new financial instruments in Iranian capital market was one of the achievements of the country‟s exchange markets during the past year. In this due, IME launched “option” in early March 2019 in an approach to diversify financing methods for agricultural products. Option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option. And in mid-October, IME launched “futures contract” for the pistachio deals. Futures contracts (more colloquially, futures) are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. Addressing the ceremony to launch this financial instrument, Soltani-Nejad said, “There is no futures contract for pistachio deals in any mercantile exchange in the world and it is the first time that such contract is launched in a mercantile exchange.”

 NIOPDC to offer 20,000 tons of kerosene at IRENEX on Monday National Iranian Oil Products Distribution Company (NIOPDC) is going to offer 20,000 tons of kerosene at the international ring of Iran Energy Exchange (IRENEX) on Monday, ISNA reported. As reported, the offering will be in the form of two separate 10,000-ton cargoes at the base prices of $505 and $510 per ton, respectively. The first cargo is going to be offered at 12 a.m. local time, while the second cargo will be offered at 1 p.m.

As decided at IRENEX, the applicants have to initially pay 10 percent of the value of the contract in rials or other foreign currencies and in case their bidding is accepted they must pay the rest to receive the purchased cargo. The buyer company will also be required to pay for loading and unloading costs at the source of delivery. Since the U.S. withdrew from Iran‟s nuclear pact in May 2018, vowing to drive Iran's oil exports down to zero, the Islamic Republic has been taking various measures to counter U.S. actions and to lessen it's economy‟s reliance on oil. In this regard, Iranian think-tanks and energy experts have been repeatedly stating that the country should increase its refining capacity in order to make up for the reductions in crude oil sales by exporting oil products. Therefore, in the past few months, the National Iranian Oil Company (NIOC) and its subsidiaries have been constantly offering various oil products at IRENEX. NIOC sold 450,000 tons of oil products worth $160.656 million at IRENEX international ring during the week ended on September 20.

01 November 2019

 Kish Island hosting intl. building industry exhibition The 15th International Civil and Building Industry Exhibition (Kish Buidex 2019) kicked off on Wednesday in Kish Island in southern Iran, IRNA reported. Some 105 Iranian companies, as well as 15 foreign exhibitions from five different countries, are displaying their latest achievements and services in the fields of construction technologies, equipment and building materials. Contributing to the construction industry and tourism's progress in Kish free trade zone and promoting the special status of the zone in exporting goods and services and developing civil infrastructures are among the objectives of the four-day exhibition.

 Iran, Iraq power grids synchronized Power grids of Iran and Iraq were synchronized on Friday, IRNA reported quoting Iranian Energy Minister Reza Ardakanian.

“As of today, the two countries‟ power networks are operating in coordination with each other,” Ardakanian said on the sidelines of the synchronization operation in Tehran. Underlining the positive steps taken by the two countries for expansion of cooperation in the energy sector, the official mentioned his negotiations with his Iraqi counterpart last year, saying “we decided to take serious steps in a three-year period.” “Synchronizing the two countries electricity networks, reducing losses in Iraq‟s electricity grid, maintaining and repairing the Iraqi network‟s equipment and training the Iraqi staff were among the measures which were decided to be implemented over the mentioned period,” he added. Back in October, Deputy Head of Iran Electricity Industry Syndicate said that power grids of Iran and Iraq were going to be interconnected by the end of 2019. Payam Baqeri had also mentioned Iranian energy ministry‟s plans for reducing the Iraqi power grid losses, saying “Based on a deal between Iran and Iraq, Iraq's electricity grid losses, which is currently over 50 percent, will be reduced to 30 percent by the end of 2020.” Iraq is a strategic market for all Iranian industries including the energy sector and according to agreements reached between the two countries energy ministries, the two sides are going to execute joint projects in the electricity sector over three years (or three stages) of 2019, 2020 and 2021. Since the Arab country has serious plans to modernize its electricity industry, Iran could be the best option to work in this area and to collaborate for increasing the efficiency of Iraqi power plants.

 Iron ore concentrate output exceeds 17m tons in H1 Production of iron ore concentrate in Iran during the first six months of the current Iranian calendar year (March 21 – September 22) reached 17.408 million tons, IRNA reported on Thursday. As reported, the data regarding the output of major mineral production companies released in the first half of the current year indicated that in the same period, 30.405 million tons of iron ore was produced. Production of iron ore concentrate during the first four months of the current Iranian calendar year (March 21 – July 21) reached 15.903 million tons, registering a three percent rise compared to the same period last year. As reported, the data regarding the output of major mineral production companies released in the first four months of the current year indicated that 15,903,165 tons of iron ore concentrate was produced.

Iran‟s export of iron ore concentrate rose 96.6 percent during the past Iranian calendar year (ended on March 20), compared to the preceding year. The country exported 5.552 million tons of the product worth $398 million during the mentioned period.

 Tehran hosting 2 intl. exhibitions The 15th International Exhibition for Mines, Construction Machinery and Related Industry and Equipment (Iran ConMin 2019) and the 19th Iran International Electricity Exhibition (IEE 2019) kicked off on Thursday at Tehran Permanent International Fairgrounds, IRNA reported. As reported, some 464 domestic exhibitors along with 36 foreign companies from 13 countries including Italy, France, Germany, Russia, Japan, the United Kingdom, China, and Turkey are attending IEE 2018 to showcase their latest achievements and products in the electricity industry. According to the organizers, the number of knowledge-based companies attending the exhibition has doubled this year compared to the previous event. In this edition of the exhibition, over 40 knowledge-based companies are presenting their achievements in the electricity industry. As the region‟s leading trade fair for the construction machinery, mining equipment, building and natural stone sectors, Iran ConMin 2019, on the other hand, is hosting dozens of domestic and foreign exhibitors from various countries; most of which are small and medium enterprises. The exhibition is set up in three main sectors: exploration, extraction, and processing, each of which involves a variety of industries, mining equipment and machinery, various investor companies, financial and credit institutions, and consulting engineers. Both of the events will be wrapped up on Sunday.

 Exports of oil products to Iraq continues despite unrest: OPEX Spokesman of Iranian Oil, Gas and Petrochemical Products Exporters' Union (OPEX) said the country continues exporting oil products to Iraq despite the unrest in the Arab country, IRNA reported. According to Hamid Hosseini, the Iraqi Kurdistan Region is the main destination for most of Iran's oil products exports like gasoline and gas oil. “Currently, we are only exporting the cargoes which were purchased in the previous offerings of such products at Iran Energy Exchange (IRENEX),” the official said.

National Iranian Oil Company (NIOC) sold 450,000 tons of oil products worth $160.656 million at the international ring of Iran Energy Exchange (IRENEX) during the week ended on September 20. In the mentioned week, 168,000 tons of gasoline worth $64.297 million as well as 162,500 tons of gasoil worth $73.964 million along with 20,000 tons of kerosene and 50,000 tons of liquefied petroleum gas were sold to foreign buyers mostly from Iraq and Afghanistan. Since the U.S. withdrew from Iran‟s nuclear pact in May 2018, vowing to drive Iran's oil exports down to zero, the Islamic Republic has been taking various measures to counter U.S. actions and to lessen it's economy‟s reliance on oil. In the past few years, Iranian think-tanks and energy experts have been repeatedly stating that the country should increase its refining capacity in order to make up for the reduces in the crude oil sales by exporting oil products. Since the first offering of oil products at IRENEX, foreign buyers, mainly from neighboring countries, expressed willingness for purchasing the products offered at this exchange market. In this regard some foreign companies and businessmen from Iraq have been assigned the Iranian Commercial Code and, some have also referred to the National Iranian Oil Company (NIOC) for participation in these transactions.

 Steel products output to reach 28m tons by March 2020 Iran‟s steel products output is going to reach 28 million tons by the end of the current Iranian calendar year, IRNA reported, quoting deputy industry, mining and trade minister as saying on Thursday. Speaking on the sidelines of the 15th International Exhibition for Mines, Construction Machinery and Related Industry and Equipment (Iran ConMin 2019), Jafar Sarqini put the country‟s steel products output in the first half of the current calendar year (March, 21-September 22) at 13.2 million tons. According to the official, in the mentioned time span, over six million tons of such products were exported to foreign destinations. “Industry ministry is planning to increase the exports of steel products to 12 million tons by the end of the year [calendar year which ends on March 19, 2020],” Sarqini said. The value of the exports of such commodities is expected to reach $9 billion by yearend, the official added. Back in August, the industry ministry released the data for steel production in the first four months of the current Iranian calendar year (March 21-July 22), which indicated that the production of such commodities increased by 11.6 percent from that of the same period of time in the past year.

According to the data, 7.204 million tons of such products were produced in the four-month period, rising from 6.453 million tons in the same time span of the previous year. In a press conference on June 8, Iranian deputy industry, mining and trade minister said the ministry has taken necessary measures to maintain the country‟s metal exports despite U.S. sanctions. “We have established a special working group in the ministry which is closely assessing the situation and making necessary arrangements to mitigate the impact of U.S. sanctions,” Jafar Sarqini told the Tehran Times in the press conference. The official noted that it is expected for the exports from the country‟s mining sector to, at least, reach the last year‟s $8.5 billion by the end of the current Iranian calendar year (March 2020). Iran‟s annual steel production is planned to reach 45 million tons by the Iranian calendar year 1400 (March 2021-March 2022), according to Sarqini.

 Iran to implement 2 power plant projects with Russians' participation Managing Director of Tajhiz Niroo Sanat Bargh Pouya Company said two giant power plant projects will be implemented in Iran with the participation of Russian company „Power Machines‟. Speaking on the sidelines of the 19th Iran International Electricity Exhibition in Tehran, Arash Behbahani said the contract with Power Machines company have been signed for implementing these two projects. He added that the project of modernization of Ramin Refinery in Ahvaz is being now implemented by „Iran Power Plant Repairs‟ through financing. Behbahani went on to say that the project of developing Gotvand in the framework of implementation and financing has started by „Power Machines‟. He noted that „Power Machines‟ is trying to take advantage of Iran‟s potentials. “Power Machines is a global power engineering company – one of the world‟s top-ten industry leaders in terms of installed-equipment volume,” according to official website of the company. “The company‟s core competency and competitive advantage extends to implementing integrated turn-key projects in the electrical power field.” “The range of the company‟s products encompasses cutting-edge, highly- efficient solutions for thermal, nuclear and hydro power plants, integrated power grids, industry and transport.”

 Kerman‟s economic, investment opportunities to be introduced to world Deputy Foreign Minister for Economic Affairs noted that the ministry is seriously pursuing the country's economic development as one of its approaches, including introducing Kerman province's investment opportunities to the world. Speaking at Rafsanjan Pistachio Festival which was attended by ambassadors and Attachés from 15 foreign countries on Thursday evening, Ali Ansari called the pistachio as the first agricultural product in Iran with an organization from planting, production to marketing and export. Ansari pointed out that farmers of Rafsanjan and Kerman province offer the high quality pistachio products to the people of the country and the world. "We hope to be able to have an organization for all agricultural products in the country, such as pistachio from production to marketing in the world," he said. Rafsanjan MP Ahmad Anaraki Mohammadi for his part stated at the festival that $47 billion revenue come from the sale and exports of non-oil products, of which $4 billion have been achieved from agricultural exports. The MP noted that half of the foreign exchange earnings from exports of agricultural products is related to the export of pistachio. The parliamentarian made the remark that Iran has long been and still has important capacities and in the past, along the Silk Road, Iranian businessmen have been using this route to communicate and trade with foreign countries. Anaraki Mohammadi went on to say that Rafsanjan has the world's largest adobe house and the Presidential Museum in terms of tourism, and there is also a unique Rage Valley with more than 90 meters high in the city, with many domestic and foreign tourists annually visit the Rafsanjan buildings and monuments.