Economy, Business And Markets

New Steel Import Levy Possible to Support Local Firms

New Steel Import Levy Possible to Support Local FirmsNew Steel Import Levy Possible to Support Local Firms

Iran is considering imposition of additional import duties to support domestic steel producers, who are facing weak demand at home. 

The initiative, though, is subject to approval by the Guardian Council.

Taking into account weak domestic demand and plans to ramp up steel production, the Iranian parliament plans to impose new duties on steel imports, according to ICANA news agency affiliated to the parliament. 

The measure may cover imports of billets, beams, flat products, tubes and pipes, and is likely to come in force in the second half of 2017. “There is at least a 5 million-ton surplus in production capacity in billet and longs segments in Iran…When import declines, these volumes may be consumed by domestic customers,” a market source told Metal Expert.

The new duty will be an additional measure to the current import tax, which is 15% on billets, 26% on longs, 20?26% on flats, depending on size and type. Market players estimate the new tariff could be around $25/ton. 

Iran’s steel imports declined in the first nine months of the current fiscal (March 20-December 20, 2016) by 20% to 2.5 million tons year-on-year, according to the Iran Steel Producers Association. 

The decline was a result of the increase in import duties up to the current level as well as low domestic consumption.

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