TEHRAN: Iranian Steel Producers Association, or ISPA has asked the government not to decrease import duties, as current tariffs could “safeguard” the domestic industry against a potential influx of imports should the US goes ahead with imposing tariffs on steel and aluminum imports, ISPA Chairman Mahmoud Eslamian told local media in Tehran.
“However, at the moment, the average price of steel in the domestic market is about $70/mt lower than international market so imports are not attractive now,” he said in a report published on the group’s website Tuesday. US President Donald Trump is expected to act upon a US Department of Commerce recommendation that a 25% tariff be added to all imported steel products, along with a 10% tariff on imported aluminum, for an indefinite time in the name of national security.
Currently, Iran imports mainly hot-rolled coil. But in the upcoming Iranian year starting March 21, 2018, all demand will be met by domestic mills, Eslamian said.
Meanwhile, the Syndicate of Steel Pipe and Profile Manufacturers is pushing for import duties on flat products including HRC and plates, to be reduced, according to an executive with the group.
Iran currently imposes an import tariff of 5% for semi-finished products, 15% for most hot-rolled strips, and 10% for HRC up to 3 mm thick. Tariffs for the next fiscal year have not been announced yet.
Iran has decreased import duties on different steel products by 5%-10% since March 2015, but steel imports continued to decline, according to ISPA.
