Iran, one of the largest steel exporter in MENA region is currently facing economic sanctions from US, owing to which the nation has witnessed a downfall in exports. As per the data released by IMIDRO, Major Iranian steelmakers exported around 4,208,817 MT of Steel during first eight months of current Persian year (21 Mar-21 Nov’18). Export decreased by around 8% Y-o-Y.
Iranian steelmakers believe that along with US sanctions, domestic rules and regulations have also impacted the steel export. According to Mr. Ahmad Khorvish, Managing Director of Kavir Steel Company Iran, “ In Aug’18, US imposed economic sanctions on Iran, contrary to expectations, there was no significant affect in the Iranian economy, but unfortunately wrong decisions taken by government has influenced the markets.”
Mr. Khorvish added, “The government is expected to consult the authorities of steel associations and producers before taking any decision, as these people are directly related to the consumers and they are in better position to explain the market condition to the government.”
The managing director of Kavir Steel Company concluded by saying, “Instead of restricting the exports, government should motivate the steelmakers to export steel in overseas market as export will reduce the pressure on steel producers and bring stability in economy.
According to Mr. Bahram Sobhani, Head of Iran Steel Producer Association (ISPA), “Iran has the capacity to export between 9 to 10 MnT steel by March 2019, if the outcomes of plans are favorable and conditions are ripe for exports. US sanctions on Iran and limitations imposed from global market on the nation has made it difficult to export steel products.”
Talking about the present circumstances, Mr. Sobhani said, “The Central Bank of Iran, , the Islamic Republic of Iran Customs Administration and other apparatuses are expected to join hands to make steel exports possible. Otherwise, either the surplus production should be hoarded or the level of production should be brought down.”
Inputs from Steel Pedia Iran
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