HDG prices on the way down in Iran

Hot dip galvanized coil prices have been coming down in the local Iranian market in the last few weeks in line with the falling prices of steel in the global markets. Currently, local Iranian traders are offering 0.5-1.25 mm HDG (the specifications for which demand is greatest) at about $970-980/mt ex-stock Tehran, down from $1,000-1,010/mt in mid-May and from $980-1,045/mt at the beginning of May.
 
There are usually large price variations observed between the different sizes of HDG in the local Iranian market, with price gaps sometimes even exceeding $100/mt. HDG prices stood in a range of about $900-1,020/mt at the beginning of January this year. At that time, most HDG sizes were at about $900/mt, with just 0.5 mm and 0.6 mm materials at a higher price of about $1,020/mt. Over the past five months, however, the minimum level of HDG prices has been rising gradually while the maximum level has not changed so much. Thus, price variation between different sizes of HDG at present occurs within a fairly narrow range.
 
On May 24, Iranian state-owned integrated flat steel producer Mobarakeh Steel sold HDG through the Iran Mercantile Exchange at $976/mt ex-works (excluding three percent VAT) with 90-day delivery. Mobarakeh, the market leader, has not changed its sales price for HDG since it resumed its sales on April 19. HDG produced by Mobarakeh usually costs about $5-10/mt more than HDG from other suppliers due to its higher quality and its popularity with buyers. 
 
Iran does not now import as much HDG as it previously did due to the number of local producers which have come on stream in the past year. According to the Iranian customs, Iran imported about 12,850 mt of HDG in the first month (March 21-April 20) of the current Iranian year, compared to about 225,000 mt of HDG for the whole of the last Iranian year (ended March 20).