Hot dip galvanized (HDG) prices have been coming down gradually during the last two weeks in the local Iranian market, following the rising trend which started in the second week of June when the Iranian central bank devalued the domestic currency. However, Iranian galvanizing mills and local traders, who welcomed the devaluation and raised their prices significantly in June, were unable to maintain their prices at high levels for more than a few days - buyers' resistance to the new increased prices forced local mills and traders to reduce their prices gradually from the second half of June up to the present.
Local galvanizing mills in Iran are currently selling 0.5-1.25 mm HDG at about Rials 12.00-12.50 million/mt for cash payment and immediate delivery, which is at same level of last week but down from Rials 12.35-12.80 million/mt two weeks ago and down from Rials 12.60-12.95/mt about three weeks ago.
On July 11, Mobarakeh Steel sold HDG at Rials 9.73 million/mt ex-works with delivery of 75 days and cash payment via the Iran Mercantile Exchange (IME), while it had been selling HDG at Rials 9.45 million/mt about three weeks ago and at Rials 9.26 million/mt about four weeks ago. Mobarakeh Steel had raised its sales price of HDG in June but it seems that Mobarakeh is not going to reduce its prices in line with the lower prices in the domestic HDG market.
CIS suppliers, which have the largest market share in Iran among foreign HDG suppliers, are now offering HDG at $940-960/mt for delivery of two to three months - a price which has not been changed so much during the last few weeks .
US$1 = Rials 10,600 (official rate)
US$1 = Rials 11,550 (free market rate)