Hot dip galvanized coil and sheet prices have been rising in the last two weeks in the local Iranian market, following the uptrend seen in Iran for other flat steel products. Local traders are currently offering 0.7-1.25 mm HDG at $960-980/mt ex-stock Tehran, compared to a range of about $940-950/mt two weeks ago. Meanwhile, 0.5-0.6 mm HDG has recently been offered at $1,050-1,070/mt ex-stock Tehran, up from $1,020-1,030/mt two weeks ago.
The local Iranian HDG market has not been so active in the last few months due to the general stagnation of demand. The new rising trend has given local traders some hope that local demand may be reactivated and that some recovery may be seen in the market. There are some indications of increased activity in the Iranian HDG market, especially as the Iranian New Year (March 21) is drawing closer and traditionally the market gets busier in the last weeks of the old year. However, most local traders do not expect the rising trend to be maintained in the coming weeks due to both local and global circumstances.
On February 8, state-owned Mobarakeh Steel, which is one of main local suppliers of HDG, sold HDG via the Iran Mercantile Exchange (IME) at $957/mt ex-works with 100-day delivery. In spite of the increased market prices for HDG, Mobarakeh has not yet hiked its sales price for the local market. Other domestic galvanizing mills, including Kashan Amir Kabir Co., Semnan Rolling and Pipe Co., Seven Diamond Co. and others (all privately-owned), have hiked their prices following developments in the local market during the last two weeks.