Hot dip galvanized (HDG) prices have been going up in the past few weeks in the local Iranian market, following the rising trend seen from August up to November. Each mill has different prices, depending on quality and reputation in the market, but in general all of them have successfully raised their prices thanks to high inflation in Iran and the weakening of the Iranian rial against foreign currencies. In the free market, one US dollar is now worth 13,600-13,700 rials, compared to 12,000 rials just a few months ago.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about Rial 13.10 -15.25 million/mt (about $1,202-1,399/mt) ex-works for cash payment and immediate delivery, up from Rial 12.80 -13.80 million/mt around four weeks ago and up from Rial 13.00-13.45 million/mt eight weeks ago.
On November 28, 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 80 days and cash payment, which is at the same level as in early November but which is up from Rial 11.39 million/mt about two months ago. Mobarakeh's sales price is usually lower than free market prices as the delivery period for Mobarakeh products is generally about three months for HDG, while free market prices are based on immediate delivery.
CIS suppliers, which have the largest market share in Iran among foreign suppliers, are currently offering HDG at about 820-830/mt CFR Iranian northern ports for delivery of two to three months. The same suppliers had been offering HDG at about $950-960/mt CFR Iranian northern ports in early November and at about $930-950/mt in early October.
US$1 = Rial 10,900 (official rate)