Turkey is Iran’s main steel supplier

Turkey is Iran’s main steel supplier

LONDON - Reuters
Turkey’s importance as a trade conduit to Iran has widened to include supplying most of its steel as Turkish banks are among the very few still willing to arrange financing for the sanctions-hit country.
Despite sometimes strained political ties, trade between the two neighbors has risen sharply over the past decade.

Now traders say steel bound for Iran is on the rise, after plunging earlier this year as toughened U.S.-led sanctions left Iranian buyers without access to major currencies.

“Turkish mills, mainly from the İskenderun region, have sold quite a lot and they have sold at a very good price level because of the massive, massive shortage in Iran, and because Iran can’t pay for it any other way,” a Turkish trader said.

Turkey’s exports of steel for construction to Iran rose to 15,500 tons in May worth roughly $10 million versus just 4,300 tons in March, the latest data from the International Steel Statistics Bureau (ISSB) show.

Traders said the exports to Iran have continued to rise and have increased significantly in the past few weeks.