Tehran has imposed new limits on exports of Iranian steel, requiring exporters to secure export permission from the ministry of industry,
mine and trade.
Under the new restrictions, issued yesterday, all Iranian steel producers have to fulfil domestic demand requirements on the Iran Mercantile Exchange (IME) before being allowed to export.
All rebar and I-beam producers are required to supply at least 60pc of their output for domestic sales on the IME, while they can export only 25pc of their production. A decision is expected in the coming weeks regarding the distribution of the remaining 15pc.
Iran produced 10.2mn t of long products and exported 2.65mn t of rebar and I-beam last year. The new restrictions are intended to cut exports. But domestic consumption has fallen by about 3pc over the past year, according to producers, and it is unlikely to be high given the impact of the Covid-19 pandemic.
Iranian steel producers are unhappy about the new regulations. They expect a fall in their production as a result, and are asking the government to revise its decision.
The ministry of industry, mine and trade last year set allocated volumes for billet supply on the IME for each producer. Khouzestan Steel was required to supply 39pc of its production through the exchange, Esfahan Steel 47pc, Mobarakeh Steel 44pc, Khorasan Steel 51pc, South Kaveh Steel 26pc, Chadormalu 23pc and Arfa Steel 28pc. The mills expect to receive revised requirements for their billet supply to the IME from the ministry next week.
