Since President Trump has entered the White House and has started the biggest trade war against the world, nobody would think that it may become a huge chance for the metal traders to provide their goods from the middle east specially IRAN.
According to the statistics, US trade war decreases the demands of the steel all over the world so in this competitive global market the price is the most important option for all of the businessmen in steel industries.
WHY IRAN?
Like his other foreign politics, President Trump faces Iran with the toughest politics that we could ever imagine. Iran’s Oil export is decreasing to the 100,000 barrel. These sanctions cause a lot of problem for Iranian government and the value of the national money-Rials-decreased to 0.00000833 dollar!!!!!!
Iran has a high natural source for Metal Industries, so they don’t have to import raw material to the country and the price of the final products will be very low.
The price of rebar is about 512$ as FOB in UAE but you can easily find it 385$ as FOB in Bandar-abbas port in Iran. Another example The price of China FOB Wire rod is about 535$ and FOB in turkey’s main port is 510$ But Iranian wire rod is selling at the price of 405 $ in FOB term. (According to the Metalbulletin Prices). Some reports say that the Iranian billet is starting to export to the china that shows the final price of Iranian products are even cheaper than China!!
Forget The Sanctions, Take the Chance!
After all these huge difference Between the global prices and Iranian Steel prices, the biggest question is how to work with Iran due to the Us Sanctions. The answer is easy: Iranian company is working with a third company to turn around the sanctions. in this way you are not trading with an Iranian company and they even can change the Certificate of origin to prevent any danger, in conclusion, you are buying from a non-Iranian company and you don’t have any transaction to any Iranian company but you are buying at a very competitive price.