On May 18, Iranian state-owned steel producer Mobarakeh Steel Co. reduced its sales price for hot dip galvanized by $44/mt week on week in its latest supplies made via the Iran Mercantile Exchange. In the supplies in question, Mobarakeh Steel, one of Iran's main producers of hot dip galvanized coil, sold a batch of 2,720 mt of this material for about $720/mt for 60-day delivery and for payment. The producer's sales price in the previous week was $764/mt under the same terms.
As one of the main local players whose prices have a strong influence on traders' price levels, Mobarakeh Steel's new sales policy has come as a strong shock to the market. While local traders have not yet cut their prices by any great degree, they are now preparing themselves for price reductions in the coming days.
The latest bookings of 0.5-1.25 mm hot dip galvanized coil in the local Iranian market have been recorded at $770-820/mt ex-works Tehran for immediate delivery and payment in cash, via local traders. This price range is unchanged from the week before. Iran's domestic hot dip galvanized market has been on a gradual declining trend since the start of 2009 when prices were in a much higher range of about $920-1,180/mt.
Although most of the local Iranian market's hot dip galvanized requirements are supplied by local mills, the market is still partially dependent on imports. According to the Iranian customs authorities, Iran imported about 182,000 mt of hot dip galvanized in the last Iranian year (21.03.2008-20.03.2009), down from 260,000 mt in the previous year.