Iran steel industry faces hurdles over LC policy - manufacturer (Exclusive)

Business Materials 24 February 2018 15:04 (UTC +04:00)

Tehran, Iran, Feb. 24

By Kamyar Eghbalnejad – Trend:

The Iranian government’s new policy on opening letters of credit for carrying out international deals poses obstacles to the producers, an Iranian steel producer told Trend.

Masoud Mohammad, the marketing manager of Vian Steel Company, has said that the government has recently obliged the producers to establish the line of credit for importing materials from Turkey, China, India, and South Korea.

“Although the decision is aimed at reducing the role of unofficial exchangers in the country’s financial system, this has spelled trouble for us,” he said.

The foreign parties sometimes disagree with the conditions of the letters of credit.

According to Mohammad, his factory is capable of producing 500,000 tons of steel products per year.

In total, the country’s annual output of steel products has already reached 32 million tons which is projected to hit 55 million tons by 2025.

The per capita consumption of steel in the county currently stands at about 230 kilos which is expected to reach 500 kilos in future.