India has made amendment to its foreign trade policy lifting a ban on trade with Iran.
The Indian Government announced through a notification that the prohibition on direct or indirect export to Iran or import from Iran is lifted. The decision came following the implementation of the Joint Comprehensive Plan of Action (JCPOA) January 16, under which most of western sanctions on the Islamic Republic were lifted.
Amidst a severe demand crunch, Iran could provide a sizeable opportunity for the distressed Indian Ferro Alloy industry.
Iran Seeks to Ramp Up Steel Production
Iran plans to double its steel production by 2025 as it is now on the cusp of economic boom. Iran is showing plenty of promise for Indian, Chinese, Japanese and western companies. According to the International Monetary Fund (IMF) the Iranian economy will expand 4.3% this year, with growth around 4% over the next two years. Iran’s imports are set to expand 18% in 2016. Indigenous steelmakers in Iran are also expanding operations and India could find a potential market in Iran to export Ferro Alloy for a number of years to come.
The deputy minister of Iran’s Ministry of Industries, Mines and Trade recently said that steel production in Iran is set to jump to 55 MnT by 2025 from 22 MnT this year. Iran has USD 29 billion of mining investments attracting interest of companies from Europe to Asia with plans to more than double steel production by 2025 and also boost exports.
Iran is the largest steel maker of MENA (Middle East & Northern Africa) region. Major raw steel producers of Iran are the Mobarakeh Steel Mill, with approximately 47 percent of the market share, followed by the Khuzestan Steel Company with about 23 percent, the Isfahan Foundry with about 20 percent, and the Iran National Steel Industries Group with some 10% of the market share.
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