Impact of US Sanctions on Iranian Steel Export

Iran, one of the largest billet exporter in MENA region is currently facing economic sanctions from US, owing to which the steel export has affected badly. Iran has exported 1,806,000 MT billet and bloom during the first seven months of current Persian year (21-Mar till 22-Oct’18).

As per the data released by ISPA, export of billet during the period increased by 1% against 1,789,000 MT exported during the same period of last Persian year.

In early Nov’18, US has imposed secondary sanctions against Iran targeting banking, shipping and insurance sector. Many market analyst believes that the sanctions are expected to cut Iranian steel exports further, gradually leading to lower Iranian steel output.

Although the move is now largely directed at the country’s oil industry and banking system, it is still expected to worsen the situation in the Iranian export steel market, which had already been struck by the previous set of sanctions imposed by US on Aug’18.

According to one of the Iranian trader, “Shipping problem is one of the major issue at the moment because almost no company wants its vessels to call at Iranian ports. Mills still offer and you can book, but it may happen that you will never ship the material”.

Billet export prices in Iran drop due to fewer buyers

Billet export prices in Iran have dropped to around USD 410-415/MT FOB levels on fewer buying interest. As market participants fear, the return of Chinese billets suppliers to the export market in recent week is likely to have further negative effect on Iran’s semi-finished steel exports.

Thailand remains top importer of Iranian billets

In calendar year 2017 alone, Thailand imported 1.24 MnT from Iranian Billets whereas Iran’s total billets exported were reported at 5.6 MnT. This year CY18 till October, Iran’s billet exports have reached 5.76 MnT out of which Thailand has already imported more 1.29 MnT of billets.

source: SteelMint

دانلود Iran Steel Export