The prices of heavy plate are still coming down in the Iranian domestic market, in line with the general downtrend seen in other flat and long products in this market. The latest transaction for 15-40 mm thick plate was concluded by local traders at $1,000-1,010/mt ex-stock Tehran for immediate delivery. This material had stood at a price level of $1,040-1,050/mt just two weeks ago, while it was at $1,090-1,100/mt three weeks ago. In early July Iran's domestic plate market peaked at levels of $1,260-1,270/mt ex-stock Tehran. Prices have been declining steadily since then, however. Currently, most local traders have put their purchases on hold as they expect to see further price reductions. All those who bought material in the last two to three months find themselves obliged to bear more or less heavy losses given the continuous slide in prices since July.
Kaavian Steel Co. is the sole Iranian producer of heavy plate at present. It has a capacity of about 400,000 mt per annum and can produce plates of up to150 mm thick. This producer has substantially reduced its prices following the sharp price reductions for plate observed in past weeks. Kaavian has recently suspended its formal sales in an attempt to stabilize the market. Khuzestan Steel Co.'s rolling mill at Oxin, near the southeastern Iranian city of Ahwaz, close to the Persian Gulf - which is currently under construction - will also be capable of producing wide heavy plates.
Iran mainly imports its carbon steel plate requirements from the CIS and China. In the last Iranian year (21.03.2007-20.03.2008) Iran imported about 577,000 mt of plate (of thicknesses over 10 mm). According to the Iranian customs authorities, during the first five months of the current year (21.03-20.08.2008) Iran imported about 130,000 mt of plate (of thicknesses over 10 mm and widths greater than 1,850 mm) - less than half the figure (i.e. 275,000 mt) it imported during the corresponding period of last year.