Hot dip galvanized (HDG) prices have not changed so much in the last few weeks in the local Iranian market. Local mills and traders in Iran had managed to raise their HDG prices gradually from early August, but from early September up to the present local market prices have been indicating stability. Of course, local traders and mills have made some new attempts to raise their prices in the last few weeks; however, factors such as buyer resistance, competition among local suppliers and high inventory have not allowed them to raise their prices yet.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about Rial 13.00 -13.45 million/mt (about $1,226-1,269/mt) for cash payment and immediate delivery, at the same level of the last two to three weeks ago but up from Rial 12.70-13.35 million /mt (approx. $1,198-1,259/mt) five weeks ago.
Last week, the main domestic flat steel supplier Mobarakeh Steel sold HDG via the Iran Mercantile Exchange (IME) at Rial 11.10-11.59 million/mt (about $1,047-1,093/mt) ex-works with delivery of 90 days and for cash payment, which is at the same level of two to three weeks ago, while Mobarakeh had been selling HDG at Rial 9.73 million /mt (about $918/mt) around six weeks ago and at Rial 9.45 million/mt (about $892/mt) around three months ago. Mobarakeh had gradually raised its sales prices of HDG for the local market in the last few months, but has kept its sales prices stable in the past few weeks.
CIS suppliers, who have the largest market share in Iran among foreign suppliers, are now 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.
US$1 = Rial 10,600