0.5-1.00 mm thick hot dip galvanized coil is currently being transacted by local traders in Iran's domestic market at $900-1,150/mt ex-stock Tehran for immediate delivery and cash payment, i.e. about $20-30/mt less than last week and approximately $50-100/mt less than the price range seen in mid-December. Nowadays those traders who are most worried about the declining trend are offering from their stocks at prices even lower than $900-1,150/mt.
In its most recent supply through the Iran Mercantile Exchange on Monday, January 12, Mobarakeh Steel reduced its sales price for hot dip galvanized coil: the producer sold about 10,000 mt of hot dip galvanized coils at about $865/mt ex-works with 95-day delivery and for cash payment.
The declining trend in Iran's domestic hot dip galvanized coil market which started in July 2008 has continued up to the present. In spite of certain fluctuations or moments of temporary stability in the local hot dip galvanized market, the declining trend has not yet hit rock bottom. Most traders are standing aside from the market at the present time, as the declining trend is so strong that everybody is seeking to avoid its effects. The end-users of hot dip galvanized, who mainly operate in the industrial and construction sectors, have remained in the market due to their regular requirements of the material; however, they are just buying to satisfy their immediate needs and are not anxious to build up any stocks at present.
Iran imported about 130,000 mt of hot dip galvanized coils in the first nine months of the current Iranian year (i.e. in 21.03.2008-20.12.2008), while it imported about 170,000 mt in the corresponding period of last year, according to the latest figures issued by the Iranian customs authorities.