The local Iranian market for hot dip galvanized has trended up again in recent days after several weeks of stable movement. At present, 0.5-1.25 mm thick hot dip galvanized, the specification range for which market demand is greatest, is changing hands at about $920-1,030/mt ex-stock Tehran, compared to a price range of $890-1,010/mt two weeks ago.
On December 21, state-owned steelmaker Mobarakeh sold HDG at about $872/mt ex-works through the Iran Mercantile Exchange (IME), whereas on November 23 it had sold the same material via the IME at about $854/mt with the same lead time. Prior to this latest increase, this producer had not raised its prices for around three to four weeks.
In 2009, the local market price of HDG registered its lowest level in the month of May when it dropped to $770-800/mt ex-stock Tehran. Since then, a certain recovery has been observed in the second half of 2009; however, weak demand resulting from stagnation in construction and industry has limited the extent of the recovery.
On the other hand, the flow of imported HDG into the Iranian market (mainly from the CIS, India and China), which usually stands at lower prices compared to local production, has created a very competitive market in Iran.
Finally, Iran imported about 105,000 mt of HDG and 147,000 mt of electro-galvanized in the first eight months of the current Iranian year (started 21 March), according to new figures issued by the Iranian customs authorities.