According to Iranian Mines & Mining Industries Development & Renovation (IMIDRO), the Iranian government planned to impose a 25% tariff on iron ore exports from 1st Oct’19. The policy of tariffs is mostly to avoid exporting raw iron ore, creating more additional value, and meet the requirements from domestic steel industries. It was understood that the Iranian government has continuously stood out for the imposition of tariffs in the past few years in order to encourage domestic companies to invest in downstream steel industries.
SteelMint in conversation with Iranian participants learned that , Iranian Iron ore producers and exporters association (IROPEX) is opposing the tariff imposition and are expecting the decision to be nullified. However, the final decision from IMIDRO remains pending.
How will it impact the iron ore supplies in global market ?
Iran has exported 15.31 MnT iron ore in last Persian year (Apr’18-Mar’19) as against 20.64 MnT in previous Iranian year, according to data maintained with SteelMint. China stood the largest importer of Iranian iron ore at 14.78 MnT for the complete Persian year, down 25% as against 19.62 MnT in previous Persian year. Indian imports of Iranian iron ore marked at 0.26 MnT as against being nil an year before.
According to the data maintained by SteelMint, Iran’s iron ore exports via bulk shipments in fourth month of current Persian year (July’19) was recorded at 1.87 MnT, up 44% as against 1.30 MnT a month ago.
Towards early Aug’19, the Iranian Ministry of industry, mine and trade stopped issuing permits for exports of iron ore pellet amid shortage in domestic market. Only the cargoes which were booked earlier were loaded but were delayed and facing demurrage costs. Towards June, the Iranian ministry had announced that only mines and not traders will be permitted to export iron ore pellet and concentrate. Besides, announcement was made for mines to fulfill the domestic demand at first and then proceed with exports.