Iran recently announced the reduction of HRC import duty from 20% to 10% (for below 3mm thickness), and 15% for above 3 mm thickness.
According to market sources, ” there are a lot of criticism to this decision, but the pipe maker syndicate are very good lobbyist and it is believed that in order to control the price in domestic market, the reduction in import duty is done.”
With respect to this announcement, SteelMint has done an assessment to figure out the impact on domestic HRC price.
| Description | Price |
| HRC Price (FOB CIS) | $ 530.00 |
| Freight from Kazakh Port to Anzali Port | $ 30.00 |
| HRC Price (CFR Anzali) | $ 560.00 |
| Import Duty 10% | $ 56.00 |
| Total Price | $ 616.00 |
| VAT 9% | $ 55.44 |
| Red Crescent Share 0.5% | $ 3.08 |
| HRC Price Inclusive of ID, VAT and RSC | $ 674.52 |
Source: IFNAA, Planner
According to IFNAA, last week 2.5 mm HRC was traded at around 609/MT including 9% VAT in domestic market. It is clearly visible that domestic HRC is cheaper than imported HRC, even after the reduction of import duty. Even in future the domestic HRC will dominate the market as , Imported HRC together with 10% import duty and 9% VAT will not be able to compete with domestic HRC.
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