Given the imbalance of demand and supply in the global steel market stemming chiefly from ex-CIS steel supply disruptions due to the ongoing war in Ukraine and consequent sanctions against Russia, the Iranian government appears to be mulling certain restrictions on exports of steel and raw materials. Accordingly, the Iranian authorities may impose duties on steel exports in order to maintain supply and thereby to control inflation in the local market. Though no official approval regarding any implementation date has been announced yet, market sources expect to see the imposition of such restrictions in the nearest weeks. “As of today, only a draft has been developed. Probably we will see certain changes from next year,” a representative of an Iranian steel mill stated. The new fiscal year in Iran starts on March 21.
Meanwhile, uncertainty as regards the future price trend has gripped Iranian billet export activity, with a big gap between prices targeted by suppliers and bids voiced by customers. In particular, while Iranian billet producers have started testing the market with offers at $700-715/mt FOB, and the highest bid in the latest tender was voiced at $658/mt FOB, down $22/mt compared to the transaction done last week. “We still have some offers at high prices, but every sharp market bullishness is followed by a sharp bearish movement,” an official at another Iranian steel mill stated.