Hot dip galvanized (HDG) prices have come down during the last three weeks in the local Iranian market. Local Iranian suppliers of HDG had made some attempts to raise their prices in December and early January but were not very successful due to weak demand and high supply. There continues to be a significant gap between supply and demand in the Iranian domestic HDG market.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about $1,000-1,080/mt ex-stock Tehran for cash payment and immediate delivery, compared to price levels of $1,020-1,075/mt about three weeks ago, $990-1,060/mt about five weeks ago and $1,010-1,075/mt around seven weeks ago. The gap between the upper end and lower end of prices for HDG has lately increased to $80/mt, compared to about $50/mt three weeks ago. Chinese origin HDG costs about $20-40/mt less than Iranian origin material due to its lower quality.
Pre-painted galvanized iron (PPGI) of 0.5-0.80 mm thickness is currently standing at a price level of about $1,100-1,120/mt ex-stock Tehran, down from $1,130-1,160/mt about three weeks ago. State-owned Mobarakeh Steel is the main local supplier of PPGI in the Iranian market, while Chinese origin PPGI holds a considerable share of the market in Iran at present.
On February 22, Mobarakeh Steel sold HDG to local buyers via the Iran Mercantile Exchange (IME) at about $865/mt with 90-day delivery and for cash payment, with this price indicating a reduction of $8/mt compared to a few weeks ago. Mobarakeh has reduced its price of HDG for the local market recently after several weeks during which it maintaining unchanged sales prices despite the fluctuations in the market.