Import HRC Prices Cool Down But Demand Remains Slack

EghtesadOnline: Iran’s import prices for hot-rolled coil cooled down over the week that ended on Oct. 11, in line with the downtrend in the major global markets.

News ID: ۷۷۹۷۳۵

15 October 2017

Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $575-585 per ton CFR Iranian ports on October 11, compared with $583-595 per ton a week earlier.

The assessment reflected recent offers of Russia-origin material reported at €465-475 ($548-560) per ton FOB Astrakhan, against €480 per ton FOB heard last week.

The estimated cost of freight to the Iranian northern port of Anzali is currently around $25 per ton, according to Financial Tribune.

The price decrease for the imported material, however, has not spurred much interest among Iranian buyers, with domestic prices remaining attractive. In addition, 2-mm HRC is subject to 20% import duty in Iran.

Recent offers of 2-mm HRC from local Iranian producer Mobarakeh Steel Company have been heard at 27,600 rials per kg, or $832 per ton, including 9% VAT.

“None of my customers requested offers from [Russian steelmaker] Magnitogorsk Iron & Steel Works [MMK] or ArcelorMittal Temirtau [of Kazakhstan],” one trader said. “Most are purchasing locally.”

Metal Bulletin’s price assessment for imported 0.5-1.25-mm cold-rolled coil in Iran was $625-632 per ton CFR Iranian ports on Wednesday, largely unchanged over the week.

MMK offered CRC at €515 ($607) per ton FOB Astrakhan.

Some offers of non-prime 0.7-mm CRC from ArcelorMittal Temirtau were heard at $580 per ton FOB Aktau. Therefore, it was not included in the assessment range.

The estimated cost of freight from Kazakhstan to Anzali is currently around $16 per ton, sources said.

The assessment for imported 0.5-1.25-mm hot dipped galvanized coil in Iran dropped to $666-680 per ton CFR, against the previous range of $705-713 per ton CFR, in line with offers.

Kazakhstan-origin coils of 0.5-mm thickness were reportedly available at $650 per ton FOB Aktau, or $666 per ton CFR Anzali, according to one source.

Chinese 1-mm coil was offered at prices as high as $680 per ton CFR southern ports of Iran.