Global steel price decline triggers appropriate amendments in Iran’s export policy

With the downtrend in the global steel market having continued to gain momentum, Iranian steel suppliers have had no other option but to lower their prices in order to be competitive in the export market. With prices having reached low levels in the latest tenders, the time has come for Iranian authorities to revise the export duties in accordance with the provisions of announcement declared by the deputy minister at the Iranian Ministry of Industries and Mines on April 11, as SteelOrbis has reported earlier. The rate of export duty for billet in Iran has declined to two percent from 11 percent valid previously, as the current export prices for ex-Iran steel billet, namely $590-600/mt FOB levels according to SteelOrbis’ assessment, are higher by nine percent than the levels fixed in December 2021, which were taken as the base price. On the same grounds, the export duty for slabs has moved down to five percent from 17 percent. Meanwhile, the export duties for hot rolled coil (HRC), cold rolled coil (CRC) and rebar are temporarily absent. “We are uncertain regarding the duration of the current rates of export duties, as the rules are changing every day in Iran,” an Iranian trader commented. It is noteworthy that the rates of export duty are not fixed, but are in direct connection with the gap between the current prices and the prices fixed in December 2021. “For now, the billet import duty is two percent. If the prices drop further, they will be reduced to zero. But there is talk in the market that the base price may be changed to the level of March,” a representative of an Iranian steel mill stated.

As SteelOrbis reported earlier, since April 2022 the amendments with regard to export duties in Iran are being adopted according to the table below, taking into account the current prices and the price rates fixed in December 2021, which have been taken as the base price.