Hot dip galvanized (HDG) prices have generally been moving up in the past week in the local Iranian market, continuing the rising trend seen in August and September. Each mill has different prices, depending on quality and reputation, but most mills have been raising their prices in the last few weeks. Traders and mills had made several attempts to raise prices in the past few weeks, and have finally succeeded in gaining acceptance for higher prices.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about Rial 12.80 -13.80 million/mt (about $1,198-1,292/mt) ex-works for cash payment and immediate delivery, compared to Rial 13.00-13.45 million/mt (about $1,217-1,259/mt) two to three weeks ago and up from Rial 12.70-13.35 million/mt (about $1,189-1,250/mt) six weeks ago.
On October 4, Iran's main domestic flat steel producer Mobarakeh Steel sold HDG at Rial 11.39 million/mt (about $1,066/mt) ex-works with delivery of 90 days and cash payment via the Iran Mercantile Exchange (IME), compared to Rial 11.10-11.59 million/mt (about $1,039-1,085/mt) about one week ago, while it had been selling HDG at Rial 9.73 million/mt (about $911/mt) seven weeks ago. Mobarakeh has been gradually raising its sales price of HDG for the local market in the last few months.
CIS suppliers, which have the largest market share in Iran among foreign suppliers, are offering HDG at $960-980/mt CFR Iranian northern ports for delivery of two to three months, which is about $10/mt higher than their quotations in the second half of August and early September. CIS suppliers have been gradually pushing up their prices since mid-September.