Flat Steel Import Market Cools as Domestic Prices Drop

EghtesadOnline: Import prices for flat steel materials cooled down in Iran in the week that ended September 20, as some lower offers were heard in the market.

News ID: ۷۷۹۳۶۱

23 September 2017

“Offers of [domestically produced] hot-rolled coil from Iranian steelmakers–Mobarakeh Steel, in particular–dropped by around $20 per ton [this month], which made import offers decrease too,” a source on the sellers’ side said.

At the end of last week, Russia’s Magnitogorsk Iron & Steel Works (MMK) offered HRC within the range of €500-510 per ton FOBb Astrakhan, Metal Bulletin reported.

However, early this week, some new offers have already been heard at €490-495 per ton FOB Astrakhan, Financial Tribune reported.

The estimated cost of freight to the Iranian northern port of Anzali is around $20 per ton.

Meanwhile, a cargo of material from ArcelorMittal Temirtau of Kazakhstan was heard available in Iran at $600-610 per ton CFR Anzali, according to one source.

Another source, however, reported offers at the significantly lower price of $570 per ton FOB Aktau, but this was still $5 per ton higher than prices heard in early September.

This would be equivalent to $583 per ton CFR Anzali, considering the estimated cost of freight of around $13 per ton.

There were no HRC bookings heard done this week in Iran.

Metal Bulletin’s price assessment for imported 2-mm HRC in Iran narrowed to $583-610 per ton CFR Iranian ports on September 20, against $573-618 per ton a week earlier.

The price assessment for imported cold-rolled coil in Iran also narrowed to $620-625 per ton CFR Iranian ports on Wednesday, against $613-654 per ton CFR two weeks ago.

There were no new offers of MMK material heard in the market this week, while ArcelorMittal Temirtau’s CRC was available to Iranian customers at $610 per ton FOB Aktau. This would be equivalent to $623 per ton CFR in Iran, considering the estimated cost of freight of around $13 per ton.

Recent offers of 0.6-mm hot dipped galvanized coil from Kazakhstan were heard around $700 per ton FOB Aktau, or $713 per ton CFR Anzali.

China-origin material in 1-mm gauge was available within the range of $705-710 per ton CFR.

Metal Bulletin’s price assessment for imported HDG in Iran was $705-713 per ton CFR Iranian ports on September 20, against $700-710 per ton a week earlier.

Imported HRC and CRC are subject to 20% import duty in Iran and HDG to 26% import duty. There is also 9% VAT imposed in the country.

All the above-mentioned import prices are exclusive of import duties and VAT.