The minimum amount, according to the letter on Wednesday, is 120% of the exchange’s effective demand for the last fiscal year (ended March 20, 2018). Any change in the volume will be advised by the ministry, Tasnim News Agency reported.
Failing to comply will halt steelmakers’ exports and even freeze their trading codes, as the letter emphasizes that steelmakers must prioritize meeting local demand over shipments abroad and focus on creating higher value-added.
The letter also specifically addresses flat steel buyers, especially downstream plants, to offer at least 75% of their products on the local market and sell their export revenues to the government based on the official exchange rate of 44,000 rials, according to Financial Tribune.