May 08, 2020
Iranian government restricts long steel exports

2020-05-18
According to local sources, Iran has imposed new rules on exports of long steel products, limiting the exports of all Iranian steelmakers to 25 percent of their production.

Within the scope of the new restrictions, even in the case of export permission from the Ministry of Industry, Mine and Trade, Iranian steel producers are allowed to export only 25 percent of their production. In addition, the suppliers are required to supply sixty percent of their production  to the Iran Mercantile Exchange (IME) to fulfil local demand requirements.

The new restrictions have caused serious concerns among Iranian steelmakers. Most of them believe that the new rules will lead not only to a decline in foreign exchange earnings as a result of reduced steel exports, but also to a decline in domestic production. Moreover, the measure may strengthen the positions of Iran’s competitors in its key export destinations, namely the MENA region and Southeast Asia.


Source: Steel Orbis

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