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Anonymous
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Asked: 2019-11-02T12:05:48+00:00 In: , ,

How Iran is able to export steel despite the US sanctions?

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There are still reports of Iran exporting steel to Asia. How is it possible for Iran to ship steel, even when there is so much going on in the  Strait of Hormuz.

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    1. Mehmet

      Mehmet

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      Steel shipments from Iran remained largely unaffected by the conflict in the Gulf of Oman, which took place in June. Some traders do not care about sanctions, so most volumes are still moving to Asian countries such as China, India, Taiwan, Indonesia and Thailand.

      The high quality and competitive nature of Iranian steel are still in demand. The weakness of the Rial since the secondary sanctions were imposed has reportedly aided exports.

       

       

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    2. Milosz Bachar

      Milosz Bachar

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      It is not just steel, but Iran is able to exports other materials as well.

      • The Iranian government has no issue with export and import. Its main issue lies with using the international banking system.
      • Iran cannot use US dollars for its transactions.
      • Therefore, Iran also cannot use the US banking system, which also deals in US dollars.
      • Other national currencies such as euros, British pound, or UAE dirham are used for trading purposes.
      • Chinese and Indian are using the barter system i.e. exchanging products.
      • Most trade is made through trading houses in a few countries, mainly Dubia or a few European companies. They take most of the risks.
      • Iranian exporters usually ask between 20%-30% advanced payments.
      • Importers mostly open a letter of credit in Euros or sometimes issue telegraphic transfer
      • UAE port is also used for redirection of Iranian materials.

       

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