Hot dip galvanized (HDG) prices have been rising steadily in August and at the start of September in the local Iranian market, following the declining trend seen in the second half of June and throughout July. Local mills and traders have managed to gradually raise their prices of HDG starting from early August. The strong demand in the local market for flat steel products, the strengthening of foreign currencies against the Iranian rial and high inflation are some of the main factors which have helped to boost HDG prices in Iran recently.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about Rial 13.00 -13.50 million/mt (about $1,226-1,274 /mt) for cash payment and immediate delivery, at the same level as last week but up from Rial 12.70-13.35 million/mt two weeks ago and up from Rial 12.30-13.00 million/mt three weeks ago.
On September 6, main domestic flat steel supplier Mobarakeh Steel sold HDG at Rial 11.10-11.59 million/mt (about $1,047-1,093/mt) ex-works via the Iran Mercantile Exchange with delivery of 90 days and cash payment, while it had been selling HDG via the IME at Rial 9.73 million/mt about three weeks ago and at Rial 9.45 million/mt about ten weeks ago. Mobarakeh has raised its sales prices of HDG for the local market in the last few months in line with developments in the local HDG market.
CIS suppliers, which hold the largest market share in the Iranian HDG market among foreign suppliers, are now offering HDG at $950-970/mt CFR Iranian northern ports for delivery of two to three months, which is at the same level as in the second half of August but up about $10-15/mt from the second half of July.
US$1 = Rial 10,600 (official rate)