Iran: Finished steel exports climb 20%, y-o-y, in Persian year ended March

Iran's finished steel exports in the last Persian year (21 Mar'21- 20 Mar'22) stood at 3.40 million tonnes (mnt), registering a significant 20% surge compared to the same period last year, according to data from the Iranian Steel Producers Association (ISPA).

• Exports of long and flat products were recorded at 2.84 mnt and 0.56 mnt respectively during the period. Exports of long steel increased by 29%, while flat steel exports fell by 12% y-o-y.
  
  
• Exports of billets and blooms totalled 5.97 mnt, up 12% y-o-y.
  
  
• Slab export volumes were recorded at 2.58 mnt, a sharp rise of 62% compared with the same period last year.
  
  

The country's finished steel exports fell sharply due to the COVID-19 outbreak, sluggish international trade along with restrictions on electricity consumption and widespread blackouts which prevailed in the second quarter of last year.

Meanwhile, restrictions on natural gas consumption during winter due to higher fuel consumption and supply constraints in northern Iran were pressing concerns too.

However, when power curbs-related issues were resolved, Iranian sought to increase production and push up billet export allocations.

Govt announces steel export tariffs

The Iranian Deputy Minister of Mines & Materials announced on 11 Apr'22 the imposition of export tariffs on various products, including steel, sources confirmed.

In the case of steel billets, the export duty will be to the extent of 17% of the total product price. This move has been initiated to discourage exports, it is believed.

Outlook

It seems that Iranian steelmakers are awaiting clarity and further details on the export tariffs. Thus, it is expected that the mills are likely to remain a tad inactive in the export market in the near term.