Iran expects export growth after restrictions are lifted

Iran's Ministry of Industry, Mines and Trade has lifted certain restrictions on the export of semi-finished steel products for three months from June 1. Exporters will no longer need a license to sell overseas, but they will still need to first offer a certain tonnage on the Iranian Mercantile Exchange.

The ministry has asked the Export and Import Regulatory Authority to submit a monthly export report for steel mills to ensure that domestic sales and foreign exchange return obligations are met.

“Removing export restrictions and facilitating steel exports is a positive step to support steel production,” says the Steel Producers Association of Iran (ISPA) on its online portal in Chile. "The price of steel on the world markets is very favorable, and due to the downturn in the domestic market and the country's need for foreign exchange, steel exports are another requirement for the country's steel industry."

The association currently expects steel exports to reach 12 million tons, with revenues of $ 8 billion in the Iranian year until March 20, 2022.

ISPA Vice Chairman Bahador Eramyan says that while most countries use tariff instruments to improve trade, there has been a "new phenomenon" in Iran, whereby every shipment must be approved by the government. He adds that trade liberalization should be used as an opportunity to boost exports to China.

“World prices are rising weekly,” he notes. “According to forecasts, this trend will last no more than a year, and gradually, after this period passes and the accumulated demand decreases, we will see that in a short time the situation will return to its previous conditions, and prices will even fall. It is estimated that this downtrend will occur as early as 2022. ”