Iranian Government to Ease Export Process; Beneficial for Steel Exporters

Iranian exporters have been suffering from two sides, one from US Sanctions and another from government rules and regulations on export. In order to ease the problem Iranian government decided to provide concession on export to the exporters.

Currently, as per Central Bank of Iran rule, exporters has to return their earnings to the economic cycle three months after shipment. As per exporters this time frame is impractical since under the current US sanctions regime, repatriation would take at least six months. Earlier this month the CBI threatened exporters with legal measures if they fail to meet forex commitments.

Recently, Mr. Reza Rahmani Iran's minister of industries, mining and trade announced new concessions to exporters and promised closer cooperation to help resolve pending issues outlined in the long list of demand of businesses. Speaking about the complaints and grievances of exporters, in particular about currency repatriation rules, Mr. Rahmani said a working group comprising representatives from ICCIMA, the Central Bank of Iran and other relevant agencies is needed to debate and decide on problems that have been rising since last summer when the US announced new scansions and the IRR tanked.

He is also concerned about the current economic condition, he said," In the current circumstances, the most important threat (to the economy) is the closure of factories and production units, lack of funds and shortages of raw materials.

Iran Semi-Finished Steel Export Risen by 18% Y-o-Y

Iran one of the largest Semi finished exporter in world has exported around 5.90 MnT during CY'18 (Jan-Dec'18), registered a growth of 18% Y-o-Y against 5 MnT exported in CY'17. South East Asian countries were the largest importers of Iranian Semi finished during the period.

Major Importers of Iranian Semi-Finished Steel

Thailand was the largest importer of Iranian semi-finished steel in CY'18, the nation imported 1.37 MnT from Iran during the period. Export to Thailand registered a growth of 10% Y-o-Y despite US sanctions owing to which the nation decreased its import from Iran.
Indonesia was the second largest importer of Iranian semi-finished steel, the nation imported 1.09 MnT from Iran in CY'18. Export to Indonesia increased by more than 100% Y-o-Y amidst US sanctions.

Other major importers includes UAE (1.05 MnT), Egypt (0.67 MnT) and Oman (0.40 MnT).

Inputs taken from Financial Tribune