In the Iranian market locally produced St37 grade heavy plate or plate of equivalent thickness, i.e. 15-40 mm, is already being transacted by domestic traders at $1,250-1,260/mt ex-stock Tehran for immediate delivery. Until two weeks ago this material had been selling at about $1,120-1,130/mt for the duration of several weeks. Kaavian Steel Co. is the sole supplier of heavy plate in Iran at the present time. There are a few other rolling mills which are currently under construction which will be capable of rolling heavy plates. Kaavian's rolling mill has a capacity of about 450,000 mt per year while the plate it produces has a maximum width of 1,200 mm. Naturally, Kaavian cannot satisfy all the domestic market demand and so the shortfall is compensated for by imports.
Most heavy plate imports into Iran come from CIS countries, especially Russia and Ukraine, and also from China. The latest bookings by local traders of Russian and Ukrainian origin grade St37 heavy plates or plates of equivalent thickness of 12-40 mm were concluded at $1,210-1,400/mt ex-stock Tehran. Grade St52 heavy plates, which are not produced locally, have a price at least $200/mt higher than grade St37.
Khuzestan Oxin Steel Co., which has a capacity of one million mt of heavy plates, is one of the main projects sponsored by the Iranian state sector and is already in the final stages of construction. This rolling mill is expected to come on stream within the next three to four months and will be able to roll plates with widths of up to 4,500 mm and thicknesses of up to 150 mm. In terms of the width of the plate produced, this mill will be unique in the Middle East.
Iran imported about 600,000 mt of heavy plate (of 10 mm thickness and higher) in the last Iranian year (20.03.2007-20.03.2008). Heavy plate in Iran is currently subject to a custom duty of four percent - the country's lowest custom duty for a finished product, the same as that for billet - due to the shortage in local production.