Iran's hot dip galvanized market has declined a little in the past week, after the soaring trend which began in early April. The latest local bookings of 0.5-1.25 mm HDG have been recorded at $1,010-1,040/mt ex-stock Tehran, down from $1,030-1,070/mt the week before, but up from the range of $960-1,020/mt seen in the second and third weeks of March.
Hot dip galvanized prices in the local Iranian market had posted an upward movement in the first week of April, after the market reopened following the two-week holiday for the Iranian New Year. However, this rising trend failed to last longer than one week, with prices starting to decline in the second week of April. In spite of all the efforts of local galvanizing mills and traders to maintain the increased prices, they were unable to keep prices at $1,030-1,070/mt for longer than a few days in early April, due to the lack of strong demand in the local market. Compared with the local long product markets, the markets for flat products in Iran have indicated greater stability in recent times. Hot dip galvanized prices increased in February, just like other flat products, but did not climb up as much as local long product prices.
Since the Iranian market reopened in early April, state-owned mill Mobarakeh Steel has not supplied HDG, or any other flat products, to the local market. Mobarakeh usually plays a key role in determining local market prices, especially in a booming market situation. At present, local Iranian traders are waiting for next week when Mobarakeh may resume its sales to the local market through the Iran Mercantile Exchange (IME).
Finally, according to the newly published data from the Iranian customs authorities, Iran imported 209,000 mt of HDG and 235,000 mt of electro-galvanized steel in the last Iranian year (ended March 2010).