In the wake of increasingly debilitating sanctions, Iran takes advantage of the fact that its steel industry is not under sanctions and floods the African and Asian markets with cheap construction materials.
Alchemists have tried it for centuries. How to turn a cheap metal into gold, how to make money without investing. It seems that Iran has found the way. Once the need is crucial, people come up with ideas. Iran has two major assets, apart from Terror and Islamic Fanatics, namely oil and steel. In the past they turned oil into gold, but now, with the US sanctions holding them by the throat, steel is the real deal.
Within ten years Iran went from place 16 to the top ten in steel production. Last year only, Iran increased the steel production by up to 14% per month, from January 2020 by almost 50%. And this is only the beginning. With 30 million tons this year Iran plans to expand its production by another 25 million tons by 2025. This would bring Iran to the level of Germany and beyond. For now, steel export is not sanctioned and Iran’s revenue for 2020 has already reached 4 billion US$. The Iranian government has levied taxes on iron ore export to make sure that the steel plants will reach their full capacity, allegedly planning up to 200K new jobs.
Black gold is one thing, steel is quite another. Even if oil prices are down, there is always demand, whereas steel is a building market. China covers most of the worlds need, and if you want to go for quality, there is always Germany and France. So, you might ask yourself, why would Iran go for this expansion and how can she afford to.
The answer is quite simple. Iran is investing in Africa, expanding and building. No one there will ask questions about the quality or specs. This is an easy market for Iran for the next decades and as always, when it come to alchemy, you will have to pay a high price to buy cheap. Iran is using Africa’s weakness to gain riches, expanding production for the price of quality, abusing binding contracts to make good for lost oil revenues.
The problem doesn’t end there. Once buildings will crumble and bridges will fall, and crumble they will, Europe will have to help again, while the initial investment went into Iran’s pocket and the African countries will be left bled out and weak. Not to mention that the medical care is provided by Iranian companies, supplying their low-quality equipment and materials, they couldn’t sell any were else and were not willing to use on themselves.
Next are the Asian developing countries
The writing is on the wall, but rest assured, this wall too will crumble and fall.