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Iran boosts steel duties to keep Chinese steel out

Iran has raised duties on various steel imports by 10 to 20 percent to protect Iranian steelmakers from a flood of Chinese imports.

China’s steel exports to the world rose 50.5 percent last year to a record 94 million tons, or about a quarter of global trade. The increase has sparked a chorus of calls around the globe for action to protect local steelmakers.

This year alone, measures to protect steelmakers have been taken in the European Union, Indonesia, India, Turkey and now Iran.

“A steel import tax has been imposed … to protect local steel mills against dumping by China, Russia and Turkey,” Keyvan Jafari Tehrani, of the Iranian Iron Ore Producers and Exporters Association (IRIOPEX), told Reuters.

The duties, which will apply to products such as billet, hot rolled coil, wire rod and rebar, are in line with Iran’s ambitious 2025 plan to quadruple its steel output.

“Some believe that duties of 20 percent on rebar and 10 percent on billets cannot stop the tide of subsidized Chinese steel exports, and higher tariffs may be required,” said Bahador Ahramian, a board member of IRIOPEX and the Iran Steel Producers Association.

In addition to raising duties, Iran has banned steel importers from buying foreign currency at the official exchange rate, which is about 20 percent below the open market rate.

 

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