By Pishtaz | 2024-04-29

The US Treasury Department is targeting Iran's steel industry with new sanctions following the unprecedented attack on Israel from Iranian soil earlier this month.

The sanctions target five companies in multiple jurisdictions providing component materials for steel production to Iran's Khuzestan Steel Company (KSC), or purchasing KSC's finished steel products.

KSC is one of Iran's largest steel producers and its top producer of steel bars.

The company's production and sale of steel bring in billions of dollars for the Iranian government annually, the Treasury said.

KSC was designated in 2020 for operating in the iron, steel, aluminum and copper sectors of Iran.

Dubai-based PSI DMCC is an affiliate of KSC and has helped it source the equivalent of hundreds of millions of dollars' worth of parts used in steel production.

PSI DMCC has also facilitated the export of steel products by KSC to overseas buyers.

KSC has used companies registered in Europe to source parts and facilitate exports.

Kara Industrial Trading GmbH has purchased tens of millions of dollars' worth of steel from KSC, while selling KSC the equivalent in raw materials for use in steel production.

Good Run Limited has sold critical components including electrodes to KSC for use in steel production. Electrodes are the primary heating element in six electric arc furnaces used by KSC for steelmaking.

Magellanic Phoenix Marine and Trading Limited, based in Hong Kong, has purchased tens of millions of dollars' worth of steel products, including steel slab, from KSC since 2022.

Between 2022 and 2023, Türkiye-based HSF Dis Ticaret Limited Sirketi purchased tens of millions of dollars' worth of steel products from KSC.