HDG prices decline in Iran contrary to global trend

Hot dip galvanized prices are coming down in local Iranian market, contrary to the climbing trend which has been observed in global HDG prices in recent weeks. Hot dip galvanized of 0.50-0.90 mm thickness (the specification range which holds the largest share in Iran's HDG market) are currently standing at levels of $920-940/mt ex-stock Tehran, down from $940-960/mt last week.
 
In Iran weak demand for HDG - due to the economic downturn and the stagnation in construction activities in the country - is the main factor exerting a negative influence on price levels in the local HDG market. In addition, Ramadan is expected to prevent any recovery of the market in the coming weeks.
 
On August 17, Iranian state-owned steelmaker Mobarakeh Steel raised its prices in its last supply of HDG via the Iran Mercantile Exchange (IME). The producer sold several batches of HDG at $772-794/mt ex-works with a long delivery period of three to four months, while it sold the same material via the IME at $772/mt just the week before.
 
Both the global price increases of HDG and Mobarakeh's price increase in recent days have failed to stimulate any upward movement in the local Iranian HDG market, with local prices instead indicating a reduction in the past few weeks.