EghtesadOnline: Iran Aluminum Company is having a hard time keeping its head above the water, as it is posting 20,000 rials ($0.4) in losses for each kilogram of aluminum sold, the company’s managing director said.
“Production costs exceed sale prices. Each kilogram of aluminum costs 110,000 rials ($2.61) to produce, while the average local and international sale price is approximately 90,000 rials ($2.14),” Mehdi Safaghi was also quoted as saying by ISNA. The official noted that high raw material procurement costs are the primary issue, pointing to direct and indirect import duties and transportation costs as the main challenges. IRALCO is also struggling to clear its 10-trillion-rial ($238.09 million) debt to banks and contractors. IRALCO is the first producer of aluminum in Iran. The plant was founded in Arak in 1972, Financial Tribune reported.