Heavy plate prices in Iran indicate rising movement

Heavy plate prices have been rising during the last few weeks in Iran although local prices of some other types of flat steel products have declined during the same period. Heavy steel plate prices have been trending up in Iran since the middle of February, supported by the revival of local market demand ahead of the Iranian New Year (started March 21).
 
St37 grade heavy plate, which is mainly supplied by local mills and holds the largest share in the market among the other grades of heavy plate, has witnessed some price increases in recent weeks. Local mills are currently pricing 10-40 mm St37 grade heavy steel plate at about $750-780/mt ex-works Ahwaz (southwest Iran), up from $735-770/mt about two weeks ago and up from $745-780/mt about five weeks ago. Kavian Steel and Khouzestan Oxin Steel are the two main domestic suppliers of heavy steel plates in Iran.
 
Russian and Ukrainian origin 20-50 mm St52 grade heavy steel plates are now priced by local traders at about $975-1,060/mt ex-stock Tehran, up from $960-1,050/mt about two weeks ago and up from $915-990/mt about five weeks ago. CIS origin 10-50 mm A516 grade heavy steel plate now stands in a price range of about $970-1,070/mt ex-stock Tehran, up from $960-1,050/mt about two weeks ago and up from $1,030-1,045/mt about five weeks ago.
 
Local Iranian mills generally do not produce St52 and A516 grade heavy plate and so Iranian market demand for these grades is dependent mainly on imports from CIS countries (Russia and Ukraine). Difficulties facing imports have caused reductions in inventories of these grades of heavy plate in the last few months in Iran. These lower inventories may exert a stronger impact on prices in the future if local traders fail to replenish their stocks.