Iranian market players have been discussing the most recent suggestion to revise export duties in order to reduce the pressure on sellers. However, the government’s economic commission is still required to approve the change in order for the measure to be applicable in actual business operations.
According to the available data, the export tax is expected to be reduced from 20 percent to one percent for DR pellets and from 20 to five percent for concentrate. In addition, it has been recommended that the export duty for steel semis, including slab and billet, should be reduced from two percent to one percent. At the same time, the export tax for DRI/CDRI is to increase from 10 percent to 15 percent.
There is no timeline for the decision of the economic commission, nor for the validity of the revised taxes. In addition, it is unclear if the new rates, if approved at all, will be workable for ongoing shipments and for cargoes already sold but not shipped. “It will certainly ease the pressure a little on semis exports, and definitely for exports of iron ore. However, DRI sales may become more challenging,” an Iranian market source told SteelOrbis.
