Iranian Steel Association reports declining exports

The Steel Producers Association of Iran warned of a decrease in steel exports from Iran and foreign exchange earnings due to the Covid-19 pandemic and government export restrictions.

Steel exports from Iran could be 3.5-5 billion dollars a year, if not for the restrictions imposed by the ministry. The pandemic has increased pressure on Iranian steel exporters, who are already required to obtain ministry approval for exports.

The association demanded that all restrictions on the export of iron and steel be lifted immediately. He also requested that export development be a priority for Iran's working group on market regulation, as well as the introduction of export incentives.

Steel exports from Iran exceeded 11 million tons in the Iranian year through March 19, 2020, generating revenue of $ 3.5 billion.

“Were it not for the regulatory and administrative constraints of the market regulator and the ministry, the country's golden opportunity for steel exports would not have been missed ... and we may now have seen about $ 5 billion in steel exports,” the association says. ... says the letter.

“Now, in the new year, when oil prices have reached their lowest level in the last six years, and the export of oil and its derivatives has fallen sharply, the eyes of people and officials are hoping for the import of foreign currency into the country,” the association continues. "In addition to the sanctions, the corona crisis has exacerbated foreign restrictions on steel exports from Iran, and the country's domestic decision-making system is expected to understand and pay attention to these components, facilitate processes and remove restrictions on export development."

The association adds that the decline in exports poses a threat to Iran's steel industry, moreover, given the continued growth in production and stagnation in the domestic industry and construction.

In Iranian 2019 through March 2020, exports of semi-finished products rose 26% year-on-year to 6.91 million tonnes, while exports of finished steel increased 16% to 3.46 million tonnes. That's up from 43% and 37%, respectively, after six months to September 22, 2019. Annual apparent consumption of finished steel remained unchanged year-on-year, but stood at 15.6 million tonnes. Crude steel production increased by 10% to 27.2 million tonnes, and finished steel production by 6% to 20.2 million tonnes.