Iran imposes restrictions on steel exports

Iran has introduced a requirement that all steel exports include a certificate of origin. This is done in order to better track shipments overseas and hold in foreign currency received for export.

Prior to this, some traders bought steel domestically and exported it at unofficial black market exchange rates. This is because the Iranian value of the rial per dollar is below the level of the official exchange rate controlled by the government, which means that the product can be exported at more competitive prices while maintaining profits.

“This is a measure designed to better track steel exports so that only original companies do exports that will return the currency to the central bank, not one-off companies that could disappear,” says an Iranian metallurgy source. “I believe this can be done exports are less competitive because it effectively limits the exchange rate received by exporters to the official rate imposed by the government. ”

There are proposals that only manufacturers can obtain a production certificate, meaning traders will no longer be able to export steel. "Government policy returns export money through the central bank, so a certificate of origin is required for exports, which only producers can obtain ... Another observer from Iran adds," Only producers can export, not traders. "

Some end-use industries have praised the move, seeing it as a way to ensure Iran has enough steel to cover domestic consumption.

In the Iranian year, since March 20, 2018, Iran's semi-finished product exports increased by 84% compared to the same period last year and amounted to 6.87 million tons, but finished steel exports fell 10% to 1.62 million tons.