Iran's customs authority has banned the import of any scrap metal, including ferrous scrap, from Iraq and Afghanistan, following a request from the Trade Promotion Organization of Iran, according to a customs circular published by the Iranian customs website and domestic news agencies this week.
Scrap from the two countries could be contaminated with radioactive material or chemicals, and consignments may also contain unexploded munitions, TPO said.
Iran is not a big importer of scrap currently. The Iranian electric arc furnace-based steel industry mostly uses sponge iron and about 10%-15% of scrap feedstock, which is mostly sourced from domestic suppliers while a portion is imported mostly from Azerbaijan, Kazakhstan and the UAE -- a re-exporter, a Tehran-based trader said.
However, scrap imports are expected to increase since domestic supply growth will not be parallel to steel production development, he added.
