The reduction of hot-rolled steel coils to Iran shows a shift in behaviour for fear of falling foul of US sanctions
17 July 2018 - 19:26
byAgency Staff
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Moscow/London — Russia and Kazakhstan are cutting back sales of hot-rolled steel coils to Iran partly because of new US sanctions on Tehran, steel traders said.
The development shows that, despite protests from the Kremlin that unilateral US sanctions should not affect Russian companies, the firms are changing their behaviour for fear of falling foul of US sanctions.
Imports of Russian and Kazakh hot-rolled steel coils, used in industries from pipes and cars to agricultural equipment, make up only a small part of Iranian consumption and can be replaced. The imports were already slowing before sanctions because of low prices and weak demand, but the US sanctions have accelerated the slowdown, traders said.
The coils are shipped to Iran by Russian steel makers Severstal and MMK along with ArcelorMittal’s plant in Temirtau, Kazakhstan.
Arcelor "and the likes are cutting trade with Iran because of [US President] Donald Trump’s pressure on big companies", an Iranian trader said. Alex Agoureev, an adviser to Paramjit Kahlon, CEO of ArcelorMittal CIS, confirmed that the company planned to suspend supplies to Iran due to the US sanctions.
"Supplies to Iran will be temporarily suspended due to the sanctions. Once sanctions are lifted, the supplies will be resumed," Agoureev said.
Severstal and MMK declined to comment.
A spokesman for the Iranian ministry of industry, mines and trade also declined to comment.
In May, Trump pulled the US out of an international nuclear deal with Iran and promised to reimpose US economic sanctions on Iran. A number of European energy and financial groups have said they will end projects in Iran or suspend dealings with the country.
US measures due to kick in after a 90-day "wind-down" period ends on August 6 include sanctions on the purchase or acquisition of US dollars by the Iranian government, on Iran’s trade in gold and precious metals, and on the sale, supply and transfer to or from Iran of graphite.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Russia and Kazakhstan cut Iran steel sales
The reduction of hot-rolled steel coils to Iran shows a shift in behaviour for fear of falling foul of US sanctions
Moscow/London — Russia and Kazakhstan are cutting back sales of hot-rolled steel coils to Iran partly because of new US sanctions on Tehran, steel traders said.
The development shows that, despite protests from the Kremlin that unilateral US sanctions should not affect Russian companies, the firms are changing their behaviour for fear of falling foul of US sanctions.
Imports of Russian and Kazakh hot-rolled steel coils, used in industries from pipes and cars to agricultural equipment, make up only a small part of Iranian consumption and can be replaced. The imports were already slowing before sanctions because of low prices and weak demand, but the US sanctions have accelerated the slowdown, traders said.
The coils are shipped to Iran by Russian steel makers Severstal and MMK along with ArcelorMittal’s plant in Temirtau, Kazakhstan.
Arcelor "and the likes are cutting trade with Iran because of [US President] Donald Trump’s pressure on big companies", an Iranian trader said. Alex Agoureev, an adviser to Paramjit Kahlon, CEO of ArcelorMittal CIS, confirmed that the company planned to suspend supplies to Iran due to the US sanctions.
"Supplies to Iran will be temporarily suspended due to the sanctions. Once sanctions are lifted, the supplies will be resumed," Agoureev said.
Severstal and MMK declined to comment.
A spokesman for the Iranian ministry of industry, mines and trade also declined to comment.
In May, Trump pulled the US out of an international nuclear deal with Iran and promised to reimpose US economic sanctions on Iran. A number of European energy and financial groups have said they will end projects in Iran or suspend dealings with the country.
US measures due to kick in after a 90-day "wind-down" period ends on August 6 include sanctions on the purchase or acquisition of US dollars by the Iranian government, on Iran’s trade in gold and precious metals, and on the sale, supply and transfer to or from Iran of graphite.
Reuters
Rob Davies fights US tariffs on automotive products
How customs rebates protect Canada’s vehicle industry
WATCH: How will SA weather the US tariff onslaught?
Chinese imports to US ports peak early
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
How customs rebates protect Canada’s vehicle industry
Rob Davies fights US tariffs on automotive products
WATCH: How will SA weather the US tariff onslaught?
US duties to knock SA’s Agoa exports
EU president backs WTO reform to prevent ‘chaos’
Rob Davies says SA’s meat producers could sue the US if it imposes aluminium ...
Local steel and aluminium firms yet to feel the pinch of Trump’s tariffs
Canada slaps 25% tariff on US steel imports, but the industry is still worried
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.