Steel plates of 10-20 mm thickness are currently being transacted by traders in the local Iranian market at about $730-740/mt ex-stock Tehran, while medium sizes (10-30 mm thickness) stand in a range of $850-860/mt ex-stock Tehran. The price gap between the different sizes may be explained by the fact that thin plate sizes are also supplied by other Iranian flats producers, e.g. Mobarakeh and Ferro-Gillan, whereas the thicker or heavier plate sizes are only produced in Iran by Kaavian Steel Co.
There is a larger market in Iran for thin plate sizes as opposed to the thicker sizes. As a result, a large volume of plate of thin sizes is imported into Iran. Meanwhile, medium and heavy plates are used for special applications and so the market for these plates is not so large. Nevertheless, the fact that Kaavian Steel is the sole producer of medium and heavy plates in Iran, as well as the insufficient import levels, enable the producer in question to maintain high prices for plates over 20 mm.
Unlike previous years, this year there has not been any surge in steel demand in Iran ahead of the Iranian New Year holidays (beginning March 20), against the background of continuing stagnation in the local market and collapsing prices in the global markets.
Just like other steel products in Iran, the local transaction volume for plate has declined substantially in recent weeks, as global steel prices experience a new surge of downward movement. Most local buyers are refraining from purchases in the hope that even lower prices will be available in the coming weeks.
Finally, according to the latest figures from the Iranian customs authorities, Iran imported about 300,000 mt of plate in the first 11 months of the last Iranian year (21.03.2008-20.02.2009), while it imported about 515,000 mt in the corresponding period of the previous year.