Posted on 19 May 2021
Iran’s industry, mine and trade ministry has removed certain restrictions on semi-finished steel exports for three months effective 1 June. Exporters will no longer require a licence to sell abroad, but will still need to first offer a certain tonnage on the Iranian Mercantile Exchange, Kallanish notes.
The ministry has asked its Export and Import Regulation Office to submit a monthly report on steelmakers’ exports to ensure domestic sales and foreign exchange return obligations are being met.
“Eliminating export restrictions and facilitating the export of steel is a positive step in order to support steel production,” says the Iranian Steel Producers’ Association (ISPA) on its online Chilan portal. “The price of steel in world markets is very favourable and due to the recession in the domestic market and the country’s need for foreign exchange, steel exports are another requirement of the country's steel industry.”
The association now expects steel exports to reach 12 million tonnes and revenue $8 billion in the Iranian year through 20 March 2022.
ISPA vice chairman Bahador Ehramian says that, while most countries use tariff instruments to remedy trade, Iran saw a “new phenomenon” in which each shipment had to be approved by the government. He adds the trade policy liberalisation should be used as an opportunity to increase exports to China.
“Global prices are jumping on a weekly basis,” he observes. “Forecasts are that this trend will not last more than a year, and gradually after this period has passed and the accumulated demand decreases, we will see the situation return to the previous conditions in a short time and prices will even fall. Estimates are that this downtrend will occur as early as 2022.”
“This situation is temporary … and maybe once every hundred years a pandemic occurs in the world that takes the economic situation out of a stable state,” he continues. “In this period we have to produce everything we can and sell at a higher price. In other words, now is not the time to talk about long-term issues, and we must offer what is best.”
Source:Kallanish
