Iron export is a business process that exports iron and steel products from one country to other countries. Iron, as a main source of supply of iron and steel in the world, is exploited by many countries, and its export is of great importance.
Types of export iron
Export target countries need different steel sections and accept all kinds of iron. Some factories export raw ingots and some others send ready sections such as rebar and beam to other countries. As you know, the export of finished sections is more profitable than the export of raw steel.
rebar
iron beam
Galvanized steel sheets, oiled and black
Types of pipes
corner
Stud
Types of cans and profiles
How is iron exported?
Iron export, as one of the main products of the metal and mining industry in countries, is carried out in the following steps:
- Iron production: First, the process of extracting iron from iron ore mines is carried out. Then, the iron produced in different ways such as smelting, processing and refining, in the form of bloom, pellets, cans and rolled to be prepared in a salable state.
- Transfer and transportation: After production, the iron is packed and prepared for transportation. If the export destination is inside the country, the iron is transported to the destination by means of internal transportation such as trucks or railways. But if the destination is foreign export, international sea, air or land transportation means should be used.
- Issuance of licenses: Before starting the iron export process, depending on the destination and exporting country, it is necessary to obtain the necessary licenses and documents for export. which includes commercial, financial, transportation, etc. licenses. These licenses are determined based on the laws and regulations of the country of origin and destination of export.
- Determining the target market: After obtaining the licenses, the target markets for iron export should be determined. This includes examining foreign markets, understanding demand and needs, analyzing competition and market conditions.
- Transport and delivery of cargo: After determining the target market, the iron must be transported to the export destination. which includes transporting iron to the port, carrying out the terminal process and loading in the country of origin and unloading iron in the destination port.
- Export documentation: After the delivery of the cargo at the destination, appropriate export documentation must be prepared and presented. which includes invoices, bills of lading, permits, certificates and other legal documents that show that the goods have been properly exported.
- Payment and financial transactions: At the end of the export process, payment and account settlement is done with the buyer. This includes financial transactions such as money transfers, letters of credit, prepayment or settlement after delivery of goods.
The above steps may be somewhat different depending on the laws and regulations of each country and international trade agreements. Therefore, in any case, you must carefully follow the export laws of your country and get advice from the relevant institutions.
What are the stages of iron export?
Iron export stages generally include the following:
- Market research and demand analysis: In this step, target markets for iron exports are identified. Analyzing market demand and needs, understanding competition and market conditions in the destination country.
- Provision of raw materials: Iron as a production raw material must be provided. This includes mining and extraction of iron from iron ore mines.
- Product processing and preparation: At this stage, the extracted iron must be processed and prepared in such a way that it can be prepared for export. This stage includes refining, smelting, production of iron products such as bloom, pellets, cans and rolling.
- Transport and packaging: Iron must be transported to the export destination after procurement. At this stage, the iron is packed and prepared for transportation. Appropriate packaging in accordance with international standards is used to protect the goods during transportation.
- Issuance of licenses and documents: Before starting to export, the necessary licenses and documents for iron export must be obtained. This includes commercial, financial, transportation licenses, quality certificates and standards. Also, there may be a need to issue an export certificate and other financial documents.
- 6. Transportation: Iron must be transported to the export destination. This includes the use of internal means of transport such as trucks or railways for domestic transport and the use of international means of transport such as ships, planes or trains for external transport.
- Unloading and customs clearance: After the iron arrives at the destination port, the cargo is unloaded. Then, export documents such as bill of lading, invoices and certificates are submitted to the customs along with iron. These documents are checked and verified and import is made to the destination country.
- Financial settlement: At the end of the export process, payment and account settlement is done with the buyer. Payment may be made in cash, electronic termite, letter of credit or other methods.
It is important to note that the stages of iron export may be different depending on the laws, regulations and conditions of the countries of origin and destination. Therefore, in any case, you must comply with the relevant export laws and regulations and get advice from the relevant institutions.
What are the most exported steel sections?
The export of steel sections can happen at different times depending on the needs and demand of the market, export laws and regulations of countries and different trade agreements. But generally, the following steel sections are used in exports more than other sections:
- Steel sheet: Steel sheet is one of the widely used steel products that are used in construction, automotive, household appliances and marine industries. This steel section can be produced in different thicknesses and dimensions and is in great demand for export due to its wide use.
- Steel pipe: Steel pipes are mainly used in oil and gas industries, water and sewage industries, construction and automotive industries. Steel pipes are produced in various diameters, thicknesses and standards and are very important for export.
- Steel rolling: Steel rolling is used in construction, automotive and machinery industries. This steel section is produced in different types including simple rolling, hot rolling and cold rolling.
- Steel profile: Steel profiles include blocks, beams, strips and rebars that are used in the construction industry and metal structures. This steel section has different types depending on different structural needs and is in demand for export. However, the export of steel sections is not only limited to these sections and depending on market needs and commercial agreements, it can also be included in other sections.
To which countries does Iran export the most iron?
The largest volume of iron exports from Iran is to the following countries:
- China: As the largest consumer and importer of iron in the world, China is an important market for iron exports from Iran. China is considered as a main destination market for Iran’s iron exports due to its high demand for iron and the development of its construction and industrial industries.
- India: India is also one of the largest iron consuming countries in the world. Due to the rapid growth of the construction and industrial sector in India, the export of iron from Iran to this country is also booming.
- Türkiye: Türkiye is one of the important markets for Iran’s iron exports. As one of the steel producing countries in the region, Türkiye needs Iranian iron and exports to this country.
- Iraq: Iraq, with its high need for construction and development of its infrastructure, is an important market for Iran’s iron exports. Geographical factors of proximity and commercial connections also play an important role in the export of iron to Iraq.
- South Africa: South Africa is also considered as a market for Iran’s iron exports. The great need for construction and industrial materials in this country makes Iranian iron in demand in this market.
In addition, other countries may also be considered as Iran’s iron export destinations, but the exact amount and ranking depends on specific conditions and time and may change with changes in the commercial market.
What licenses are needed to export iron?
Exporting iron as an important mineral commodity may require special permits and regulations for exporters. All procedures and permits may vary depending on the laws and regulations of the country of origin and destination of export. Here are the licenses that are usually required to export iron:
- Export license: This license is issued by the government authorities or the Ministry of Industry, Mines and Trade and indicates the official permission to export iron.
- Mining license: If the iron is extracted from a mine, it may require a mineral exploration and mining license for export, which is issued by the Ministry of Mines or similar authorities.
- Certificate of origin of the goods: This certificate indicates the origin of the goods (for example, the country of origin of iron mining) and may be required by the customs of the destination country.
- Certificate of quality and standard: If the country of destination requires specific standards for iron, certificates of quality and standard may be required.
- Transport Permits: To transport iron to the destination country, transport and international transport permits may be required.
How to export iron to different countries
Iron exports include 4 general stages:
- Receiving orders from international customers
- Preparation of iron and steel sections
- Going through the customs process and providing documents
- Packaging products and shipping to the customer
Bridge iron import and export companies are the link between the customer and the manufacturer. They receive orders from international customers and then help the manufacturer go through the export process and deliver the order to the customer. Different countries have different export laws. For this reason, manufacturers should get help from professionals to export their products so that they do not face any problems in the export process. Cooperation with these companies also simplifies the process of customer acquisition and marketing.
Procedures for receiving iron orders
In the following, we explain the process of ordering export iron step by step:
- First, the customer sends his request to the trading company active in the field of import and export or to the manufacturer.
- The company or manufacturer offers the price to the customer.
- After the price agreement and negotiations, a contract is concluded between the trading company, the producer and the buyer.
- The customer must pay all or part of the order cost through credit documents or in cash.
- The manufacturer must prepare the order and make the necessary arrangements for packing and shipping with the trading company.
- The trading company provides the necessary documents for sending the order and customs, and also informs the customer of the shipment date.
- The cargo enters the customs, crosses the border and will be delivered to the customs of the destination country.
Iron export duties
Export duty is a fee that exporters have to pay to the government. These duties are collected to regulate the amount of exports and reduce the amount of raw iron sales. Export duties depend on the type of export product and its base price. The important thing to note is that different governments or new strategies of each government may change the amount of taxes. This issue has a significant impact on the iron and steel export market. The latest changes in export duties were approved in March 1402.
In the following, we present the export duties of each product:
Steel ingot:
1%
Slab:
1 %
Bloom:
1 %
Billet:
1 %
Iron ore concentrate:
2%
Iron ore lump:
2%
Sponge iron:
5%
Iron ore:
20 %
The price of export iron
The main pillar of competition between producers of steel sections in different countries is the price of products and hardware. Most of the customers prefer to get the products they need from the cheapest seller. Producers should declare the final product price based on the competition in the market, the amount of supply and demand and the total cost of production.
Producers determine the price of iron for export based on the price of raw materials and the costs incurred for production, the conditions of the iron market at the international level and the strategy of competition in the market to attract customers.
Export of rebar
Rebar is one of the most important export steel sections of Iran. Iranian factories such as Zob Ahan Isfahan, Neishabur and Bonab are among the exporters of rebar to different countries. Neighboring countries such as Iraq, Armenia, Oman, Syria and Qatar are the most important export destinations of Iran’s rebar. Since rebar is a processed section and has a higher price than raw iron, the profit from its export is higher for producers.
Iron export rules
The export of raw steel and iron products is carried out under the supervision of the Ministry of Industry, Mining and Trade. The Ministry of Security supervises the organization of the import and export process of various products, the quality of export products and the protection of exporters’ rights.
To comply with export regulations, you must first have a business card. Then provide the required standard for products and get export license and certificate of origin. In this process, if you get help from expert consultants and experts in the field of commerce and import and export, you will not face any legal challenge and you can export manufactured steel sections with the least concern.
The export of iron in Iran is subject to special laws and regulations established by the Ministry of Industry, Mines and Trade and other competent authorities. These laws have been compiled in order to organize and monitor the export process, protect the rights of exporters and importers, and also guarantee the quality of export products. In order to export iron, you will need to obtain various permits. Some of them are:
Commercial card: The first and most important step for exporting iron is to receive a commercial card from the Chamber of Commerce, Industries, Mines and Agriculture of Iran.
Export license: To export some steel sections, such as beams and rebars, it is necessary to obtain a license from the Ministry of Industry, Mines and Trade.
Standard Certificate: Iran's national standard certificate is required for products that are subject to mandatory standards.
Certificate of Origin: This certificate is issued by the Chamber of Commerce and indicates the country of origin of the product.
Procedures for receiving iron orders
To export iron, it is necessary to go through the following steps:
Obtaining an export license: the exporter must obtain a license to export the desired product from the competent authorities such as the Ministry of Industry, Mines and Trade.
Conclusion of the contract: The exporter and the buyer conclude the export contract by agreeing on the price, terms of payment and other details.
Product supply: The exporter must supply the desired product according to the specifications and conditions stipulated in the contract, from domestic manufacturers or through imports.
Carrying out customs formalities: The exporter must complete the customs formalities related to the export of the product by submitting the necessary documents to the customs.
Shipping: The exporter must send the product to the buyer's desired destination by choosing the appropriate shipping method.
Iron import and export companies
Many companies operate in the field of iron import and export in Iran. These companies are divided into two general categories according to their type of activity:
- Trading companies: These companies act as intermediaries between domestic producers and foreign customers. The main duties of these companies include finding foreign customers, negotiating and concluding contracts, handling customs and transportation, and receiving and paying funds.
- Manufacturing companies: some steel and iron manufacturing companies directly export their products. These companies, which are generally known among the big and powerful companies in their field, have a special department for export and perform the tasks related to marketing, sales and export of their products by themselves and without intermediaries.
Some of the manufacturers of reliable companies in the field of iron exports in Iran are:
- Isfahan Mobarake Steel Company
- Iran National Steel Company
- Zob Ahan Company of Isfahan
- Khuzestan Steel Company
- Amir Kabir Industrial and Mining Group
- Saveh Pipe and Profile Company
- Foulad Mobarake galvanized sheet company
- Khorasan Steel Company