Uncertainty prevails in Iranian flat steel market as New Year begins

The Iranian flat steel market has started the new Iranian year as it ended the old one - still in an atmosphere of uncertainty. In the last Iranian year, the Iranian rial weakened against other currencies, prices in the Iran Mercantile Exchange (IME) remained under the control of the government, while importers experienced difficulties in obtaining credit.

Due to the ongoing economic sanctions, Iranian importers are not able to obtain loans on euro and US dollar basis and so, with their only option being loans in Russian rubles, imported flat steel volumes have been affected. In the first 11 months of the last Iranian year (March 21, 2011 - February 20, 2012), Iran's hot rolled coil (HRC) imports declined to 1,646,000 mt from 1,920,000 mt in the same period of the previous Iranian year. When comparing the same periods, billet import activity in Iran declined by 50 percent.       

In the first days of the current Iranian year, import HRC prices have remained unchanged. Accordingly, offers of imported 2 mm x 1,000 mm HRC at the northern Iranian port of Bandar Anzali are standing at IRR 10,800/kg ($953/mt) ex-yard loaded truck, exclusive of four percent VAT.

$1 = IRR 11,335