Bahram Sobhani, chairman of the Iranian Steel Producers Association and managing director of Iranian steelmaker Mobarakeh Steel Group, has said that a hike in steel import tariffs which took effect on March 21 this year is not enough to support the local industry and that an official demand for further hikes in import tariffs has been presented to the government.
"Although a new tariffs regime has come into effect since March, the drop in global prices has surpassed the new tariffs. For instance, prices of flat steel products have fallen by as much as 40 percent, whereas new tariffs do not exceed 15 percent. Naturally, 15 percent tariffs cannot stop or compensate for a 40 percent price decline. That is why local producers want an additional hike," said the Mobarakeh Steel CEO.
He went on to say that the industry is asking for a 40 percent import duty for finished steel products, 30 percent import duty on rebar and 25 percent duty on ingots, adding that the government has not given the green light for hiking import duties.
Mr. Sobhani also indicated that, while there are no incentives for exports for the time being, "incentives are necessary to encourage local producers to set their sights on exports and make additional efforts to compete with foreign firms". He added that Mobarakeh Steel is targeting exports totaling 1.5 million mt this year.