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***SPOTLIGHT: No letters of credit, no steel for Iranian importers, say traders

September 08, 2010 - 12:31 GMT Location: London

KEYWORDS: rebar , wire rod

A shortage of billet and rebar in Iran has sparked a flurry of bookings from Turkish and Russian exporters who have been accepting cash payments made by desperate buyers keen to get their hands on material at any price, according to market sources

UN sanctions imposed on Iran have made the country a difficult place to do business. It is particularly difficult for those traders that do not have contacts or financial support from banks, and consequently are reluctant to deal with Iran. International trading companies have had difficulties in opening letters of credits (LC's) with banks for their customers in Iran. Some Turkish and Russian producers and traders have been accepting cash payments for small parcels of 500-1,000 tonnes of rebar to be delivered by truck over the Iranian border, MB was told. “Customers are paying cash against documents only. The price is nearly $875 per tonne domestically, which is very high, and people...

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