The Iranian government plans to limit exports of steel and some raw materials in the near future to avoid possible shortages in the domestic market, according to the market sources. The perplexed global steel market is now driven by the need to fulfill the absence of CIS suppliers. In such a scenario, Iran has returned to the idea of more strict controls to maintain supply in the local market.
The Ministry of Industry has already stated that the export duties will be implemented soon on steel billets, slabs, direct reduced iron (DRI), pellets and concentrate. Also, the corporate tax exemption on these products will be lifted, as per reports.
In case the decision is finalised, the export duties are expected to be implemented by the beginning of the next Persian year, i.e., 21 Mar’22.
“The plan is to impose an export duty on steel and raw materials and probably semi-finished products such as billets and slabs,” an Iranian market source told SteelMint.
The move aims to regulate the Iranian market, specifically to avoid disbalance between local and overseas supplies, as well as to control the sharp increase in market prices. However, sources are still awaiting clarity on this amidst upcoming Persian New Year holidays which will keep the market less active.
Iran’s finished steel exports in the first 11 months of the current Persian Year (Mar’21-Feb’22) stood at 3 million tonnes (mnt), registering a significant 14% rise compared to the same period last year, according to data from the Iranian Steel Producers Association (ISPA).
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