Managing Director of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Mehdi Karbasian said some are unfortunately displeased about the markets gained by Iran saying “last year, Iran accomplished four million tons of steel exports while a new record high was set in the present year; therefore, some have unjustly raised the issue of dumping in a bid to preserve their markets at a time when the global market is suffering from a steep recession.”
Over the past two years, volume of steel exports has moved upward as the country has gained a proper position in international markets though the breakthrough has given the apology to certain countries to take measures against Iran.
As such, the European Union has recently leveled accusation of dumping in the steel market against Iran which will have catastrophic consequences in case of being substantiated.
An official at the European Steel Association (EUROFER) has announced that Iran has increased its exports of hot rolled flat steel to the EU market and accused Iran of disrupting commercial principles.
As long as April 07, the European Union will have issued a final decision whether to impose anti-dumping penalties against Iran or not. The Union will also launch investigation to examine if Iran is selling its steel at a lower price, said the official.
He said European officials believed that Iran has expanded its steels industry and shipping officials confirmed that several countries are holding trade transactions with their Iranian counterparts. Meanwhile, Western banks are still unwilling to conduct commercial ties with Iran for fear of fines from the US.
In economics, ‘dumping’ is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production. The purpose of this act is sometimes to increase market share in a foreign market or to drive out competition.
Relatedly, IMIDRO managing director touched upon the accusations of steel dumping hurled by the EU against Iran saying “the issue remains as a mere allegation.”
The official, while refuting the charges against Iran, said the claim had been made against Mobarakeh Steel Company while the Iranian firm deploys product to Europe in line with international standards.
Mehdi Karbasian called for paying due attention to domestic issues instead of focusing on false claims; “a lawyer has been put in charge of upholding Iran’s legitimacy while accusers possess no evidence against Iran to attest to confirm the allegation,” he concluded.
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