Iran plans to halve its duty on imports of hot rolled coil under 3mm thick to 10% in order to ease domestic supply tightness, Iranian market sources tell Kallanish. The move has been approved by the government but not yet implemented by Customs. This could happen from the start of the next Iranian year on 21 March.

Iran’s largest steelmaker, Mobarakeh Steel (MSC), produces HRC under 3mm thick, but sources say the quality of product is insufficient for end-users due to technical issues. MSC thus plans to import this product from, among other sources, Russia, in order to meet domestic requirement with a combination of own-produced and imported hot strip.

MSC could not be reached for comment before deadline.

Iran’s duty on imports of slab, meanwhile, will simultaneously be decreased to 5% from 15%. Although Iran is a net slab exporter, it does not produce sufficient wide slab or slab used to produce special flat products used in pipelines, refineries or the petrochemical industry.

According to Iranian Steel Producers Association data, Iran exported 934,000 tonnes of HRC in the eight months through 20 November and imported 1.2 million tonnes. Slab exports surged 3,238% to 701,000t while their imports rose 82% to 2,000t.

In March 2015 Iran hiked import duties on a raft of semi-finished and finished steel products in response to a slump in international prices and increased exports from China and the CIS. However, since the second quarter of 2016 global steel prices have consolidated at higher levels and China has reduced its presence on the export market due to stronger demand at home.