In line with the declining trend which started a few weeks ago in the Iranian steel market, hot dip galvanized (HDG) prices have been coming down in the last two weeks in the domestic market. Local traders are now offering 0.5-1.25 mm HDG at about $915-1,015/mt ex-stock Tehran, down from $960-1,025/mt two weeks ago and marking a decrease from $1,025 -1,060/mt four weeks ago. The prices of HDG in Iran had hit their lowest level of the current year in the latter half of June when they fell to $840-890/mt ex-stock Tehran.
On Monday, September 27, Mobarakeh sold some batches of HDG through the Iran Mercantile Exchange (IME) at $857/mt ex-works with 90 to 115- day delivery for cash payment, while it had sold HDG via the IME at $873/mt on September 13 and at $850- 878/mt on August 30.
Iran imported about 91,600 mt of HDG in first five months of the current Iranian year (started March 21), up 57 percent compared to 58,300 mt in the same period of the last Iranian year, according to the Iranian customs authorities. In spite of local HDG production being carried out by several galvanizing mills, the import volume has increased significantly in the current year. The HDG import flow comes mainly from the CIS countries and China, and also has an impact on prices in the local market.