The United States imposes new sanctions against the Iranian metallurgical industry

After the sanctions by Western countries, China, Russia and Kazakhstan became the only outlet for the Iranian mining and metallurgical industry fully ensuring the redemption of iron ore exports that had grown up. Reuters writes about this today.

In addition, the Iranian industry doubled the purchases of the finished metal rolling and steel compared to last year, increasing the domestic production of materials for construction, transport, as well as for use in the military industry.

Today, Iran sells iron ore raw materials totaling about $ 3 billion a year. The country, under pressure from international sanctions, has lost about half of its oil revenues and is now trying to compensate for the missing amount of money by selling iron ore.

“This allows Iran to reduce the burden of sanctions and get some compensation for its losses,” says political analyst Scott Lucas. "Faced with the loss of customers for oil, the Iranians compensate for the losses with double supplies of iron ore."

Meanwhile, while companies from the EU and the United States fearing the consequences for their international trade are fleeing Iran, China’s interest in trade with the disgraced country is increasingly increasing.

The largest metallurgical companies in China increased the purchases of Iranian iron ore raw materials to 2 million tons, which is twice as much as at the beginning of last year. “Export is growing just as the baby turns into a child,” says a representative of the Iranian Association of Mining Enterprises.

The ambitious plans of Tehran

Tehran has ambitious plans to expand the internal production of steel and hopes that he can in the short term become self -sufficient in this regard by the state.

“Iran is able to increase the domestic production of steel in the country - it has appropriate technologies, developed energy and huge iron ore reserves in order to carry out the plan,” says the general director of the Wordsteel industry group.

Nevertheless, experts are convinced that it will take many years to develop metallurgy in Iran, before it can fully provide the domestic market with a metal rolling and especially a steel workpiece.

“We have enough factories, and they can do anything, but they often take the workpiece from abroad,” Iranian businessmen say.

Today, half of the beams and slavelers used in the construction of Iran comes from Russia and China, the other half rolls at local enterprises from the export workpiece.
The United States is not asleep and on the first of July, new, even more stringent sanctions against Iran will come into force. Only this time they will touch the trading of metals.

Already today government sources