Hot dip galvanized (HDG) prices in the Iranian domestic market have remained unchanged in the past week, after generally moving up in the previous week as it continued the rising trend seen in August and September. According to market sources, each mill has different prices, depending on quality and reputation in the market. In general, most mills had been raising their HDG prices in the last few weeks, eventually succeeding in gaining acceptance for their higher prices. The low import volume, the poor supply of some sizes by local mills and high inflation are indicated as the reasons for the recent rising trend in the Iranian HDG market, despite the downward trend in the global steel markets.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about Rial 12.80 -13.80 million/mt (about $1,198-1,292/mt) ex-works for cash payment and immediate delivery, compared to Rial 13.00-13.45 million/mt two to three weeks ago and up from Rial 12.70-13.35 million/mt six weeks ago.
On November 8, Iran's main domestic flat steel producer Mobarakeh Steel sold HDG via the Iran Mercantile Exchange (IME) at Rial 11.96 million/mt (about $1,100/mt) ex-works with delivery of 90 days and cash payment, remaining unchanged as compared to its previous sale on November 1 and up from Rial 11.39 million/mt about five weeks ago, while it had been selling HDG via the IME at Rial 9.73 million/mt about 10 weeks ago. In recent weeks, Mobarakeh had been gradually raising its sales price of HDG for the local market following the price increase for flat steel products in the local market, although there is still a significant difference between its sale price and the HDG prices in the local market.
CIS suppliers, which have the largest market share in Iran among foreign suppliers, are currently offering HDG at $950-960/mt CFR Iranian northern ports for delivery of two to three months, which is about $10-20/mt lower than their quotations in early October.
US$1 = Rial 10,870 (formal rate)