Iranian Ministry announces export tariffs on raw materials, semi-finished steel

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 semi-finished steel, on 12 July, 2023, sources confirmed.

In case of steel billets and slabs, the export duty will be 2% of the total product price instead of 0.5% previously. This move has been initiated to discourage exports, it is believed.

Iran's exports of semi-finished steel products in the last Persian year (21 March 2022- 20 March 2023) totalled 7.37 million tonnes (mnt), registering a 4% drop compared to the same period last year, according to data from Petrometals.

Exports of long products were recorded at 2.81 mnt, a marginal 1% y-o-y decrease, while flat product exports fell by 17% y-o-y to 0.47 mnt.

Iran's steel production increased by 10% in the current Persian year (March, 2022-March, 2023), according to data released by the Iranian Steel Producers Association (ISPA). Total production of finished steel stood at 21.59 mnt in the period under review, higher by 10% y-o-y. Production of long and flat steel stood at 12.53 mnt (up 12%) and 9.06 mnt (up 8%), respectively.