Iran: Pellet exports likely to fall post duty revision

The Iranian government, in a letter to the Ministries of Industry and Mining and Trade, has approved the imposition of export tariffs on various products, including iron ore and pellets, on 12 July 2023, sources confirmed. The export duties on iron ore and pellets have been increased to 20%, as per the latest circular.

However, many producers opine that the government needs to take action to amend the circular on export duties of the steel chain, as the same may lead to the shutting down of many manufacturing units which might not have any positive outcomes. Saeed Askarzadeh, the secretary of the Iron Ore Association of Iran, has urged the government to review the decision as the export duty imposition is likely to damage their competitiveness in the global market.

Askarzadeh said that there was no consultation with the steel chain associations to determine the status of export duties. He emphasises that the government should cancel this directive.

He highlighted that the surplus of manufactured products like pellets and concentrate and explained that with the imposition of these duties, exports will decrease.

The plan was for the Minister of Safety to conduct necessary negotiations in the government delegation meeting to amend this circular.

He has been in talks with the Ministry of Safety to try and resolve this issue and hopes that the government will reconsider the circular and cancel the export duties. It is important for the government to listen to the concerns of the industry and make decisions that will support growth and development, he said.

Iran's pellet output of major steel mills reached 47.84 mnt last year, posting a decline of 6% compared with the previous year, according to the Iranian Mines and Mining Industries Development and Renovation Organisation. Out of these pellet exports stood around nearly 6mnt.