Iran's steel production growing; exporters challenged by foreign currency policy
Tehran, Iran, Oct.15
Iran's steel production has increased in the current Iranian year (started March 21,2018), however the issue of returning foreign currency revenues still troubles exporters, Chairman of the Board director in Jahan Foulad Gharb steel manufacturing company (JFCO) Jahanbakhsh Shokri told Trend.
"There is surplus in steel production, as well as in other goods, such as cement. These products should eventually be exported," he said.
"While the US sanctions have reduced the volume of steel exports, the issue of retuning foreign currency from exports still remains unresolved. This complicates the situation," he added.
"Transferring foreign currency in this situation is very difficult specially since major part of steel exports to Iraq and Afghanistan have been reduced and this created problems for exporters since the two countries support domestic production and have to pay heavy tariffs for importing Iranian goods," Shokri added.
"Major steel producers in Iran are from the public sector and they set the rates that are less than prices in the global market," he said.
"The price of steel is as low as the rate of scrap metal price in the global market and Iran is famous for cheap prices while other countries such as Ukraine and Turkey are selling their steel higher than prices in other regional countries," he indicated.