Copying and distributing are prohibited without permission of the publisher

***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...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.


subscribe to this feed Comment & analysis

  • COMMENT: When super-cycle poster child BHP Billiton trims its plans...

    BHP Billiton is one of the poster children for the commodities super-cycle: a mining company whose immense upstream assets in copper and iron ore have fed the industrialisation of China since the early years of the 21st century and enabled it to return $52 billion to shareholders between 2001 and 2011.

  • LORD COPPER: There is nothing to fear after JP Morgan loss ...

    So, here we go again. Another bank, another huge trade gone bad. This one doesn’t even appear to have been a case of rogue trading; a whole desk seems to have been operating with the full knowledge of the management and/or risk committee.

  • COMMENT: Keep calm and carry on?

    The decision of the Indonesian government last week to uphold the ore export ban and taxes from May 6 has failed to calm the nervous market. So far, both producers and buyers have displayed an impressive tolerance level to the export uncertainty. But how long will their patience last?

Upcoming Events