Iran imposes restrictions on the export of steel to meet domestic demand
Iran has imposed new restrictions on exports of Iranian steel by requiring that exporters obtain export permits from the Ministry of industry.
In accordance with the new restrictions yesterday, the Iranian steel producers must first repay domestic demand for Iranian Mercantile exchange (IME) before they will be allowed to export.
All the manufacturers of rebar and I-beams must supply at least 60% of its production for domestic sales on IME, while they can only export 25% of its production. In the coming weeks it is expected the decision on the distribution of the remaining 15%.
Iran has produced 10.2 million tons of rolled steel last year exported 2.65 million tons of rebar and I-beams. The new restrictions are intended to reduce exports. But, according to producers, domestic consumption last year decreased by about 3%, and it is unlikely to be high, given the impact of the pandemic Covid-19.
Iranian steel producers expressed dissatisfaction with the new rules. As a result, they expect a fall in production and asking the government to reconsider its decision.
In the last Iranian year which ended March 19, 2020 from Iran was eksportirovana a total of 10.36 million tons of finished and semi-finished steel products that by 22.21% in the annual comparison, according to the Association of steel producers of Iran.
Export of finished steel products in annual terms increased by 16% and amounted to 3.45 million tons. The share of long products accounted for the largest share of exports of finished products - 2.65 million tons (76,7%), 26% more than in the previous year.