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Despite US Sanctions Iran Awaits Steel Exports of 11 MM Tons

 

Iran is going to export steel to 120 countries and reach 11 million tons this year. Despite the brutal sanctions imposed on the country by the US.

Reza Rahmani, the Minister of Industry, Mine and Trade of Iran, announced that Iranian producers had obtained the technology to make graphite electrodes. Now two thousand businessmen are committed to this field.

The head of the executive board of the IMIDRO, a major state-owned holding company active in the mining sector in Iran, declared that the country would reach 55 million tones of steel production by 2025. And there is no doubt about it. Moreover, Iran is facing surplus steel production at present, 10 to 12 million tones of steel are going to be consumed domestically, and the rest exported.

Iran as the largest steel producer

Gharibpour, head of IMIDRO hopes for the steel companies to become large-scale and gradually acquire technical knowledge. All the organizations in the country are assisting the country’s steel industry, from the vice president of Science and Technology, universities to scientific and research centers. Harsh American sanctions aimed to stop Iran exports, but it didn’t happen, states Gharibpour.

 

Iran as the Largest Steel Producer

The steel industry is strategic for the country. Iran is a leading producer of steel in the world. The US Treasury Department imposed harsh sanctions on Iran’s iron and steel industries. Those sanctions aren’t new but have become more complicated. Twenty large corporations in the steel industry became the victim of the US sanctions; the value of these companies is 280 trillion rials (28 billion euros). Despite this fact, Gharibpour asserts that the vulnerability of the sector is very low due to the variety of traders and export destinations.

What Can Hold up Exports from Iran?

Jalalipour, an economic activist and former head of the Iranian chamber of commerce, talks about the challenges steel export may encounter. He stated that the economic environment in Iran is very uncertain and unpredictable.

The problem hasn’t been constant in recent years, but it has escalated in the past two years. Economic activists do not know what the future will bring in terms of foreign exchange, financial decisions, policies, and conditions.

Jalalipour states that the government view is different, and economic activists can’t make decisions based on those views. Since Iran is not capable of communicating and interacting with the world, Iran bases all the hopes on its internal capacities. But there’s another obstacle: the country’s business environment is very unfavorable.

Partially, foreign sanctions are the cause. On the other hand, the country lacks productivity and competitiveness. Government resources finance some of the companies in Iran; others are not supported. This condition makes no competition and a healthy environment for production in the global presence.

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