Mobarakeh keeps its HDG prices unchanged for local Iranian market

Local Iranian traders are currently offering HDG of 0.5-1.25 mm thickness (the specifications for which market demand is greatest) at $1,000-1,010/mt ex-stock Tehran, compared to $980-1,030/mt two weeks ago. The difference between mininum and maximum price levels of HDG which was about $50/mt previously has shrunk to just $10/mt at present. In fact, previously, most HDG sizes had stood in a price range of about $970-980/mt, with just 0.50 mm and 0.60 mm thicknesses at the higher level of $1,030/mt.
 
State-owned steelmaker Mobarakeh Steel, the main local supplier of HDG, has not changed its sales price of HDG for the local market since it resumed sales on April 19 after a halt of more than one month. The last sale of Mobrakeh goes back to May 3 when it sold HDG through the Iran Mercantile Exchange (IME) at $976/mt ex-works, excluding three percent VAT and with 80-day delivery. Meanwhile, other Iranian galvanizing mills have reduced their prices in the last few weeks due to the falling trend in global prices of HRC and CRC, which are the base materials for HDG production.
 
The majority of the Iranian market's HDG needs are supplied by local galvanizing mills, and this is one of the main factors which helps ensures a relatively stable market in Iran for HDG. According to the Iranian customs authorities, Iran imported about 225,000 mt of HDG in the last Iranian year (ended March 20), showing no significant change year on year.