Iran’s Flat Steel Import Prices Rise on Reduced Availability

EghtesadOnline: Prices for imported flat steel products in Iran increased over the week ended Oct. 25 amid reduced availability of materials from Russia.

News ID: ۷۸۰۰۷۹

28 October 2017

Shipments from the Russian port of Astrakhan have been restricted in the past several weeks because in autumn, Russia is focused on grain-crop exports and there is a shortage of ships for other cargoes.

In these conditions, the cost of freight from Astrakhan to the northern Iranian port of Anzali increased to $55 per ton, against $25 per ton in early October, Metal Bulletin reported.

Hot-Rolled Coil

Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $570-575 per ton CFR Iranian ports on October 25, compared with $565-575 per ton CFR a week earlier, according to Financial Tribune.

Offers from Russian steelmaker MMK remained unchanged at €470 ($553) per ton FOB Astrakhan. Considering the increased cost of freight, this would be equivalent to $608 per ton CFR, which is unworkable for Iranian customers.

In any case, it is extremely difficult to find a vessel even at such a high price, sources said.

The weakening of competition spurred Kazakhstan’s ArcelorMittal Temirtau to increase its HRC offer by $10 per ton, to $560 per ton FOB Aktau.

The estimated cost of freight from Aktau to Anzali is $15 per ton.

Cold-Rolled Coil

The price assessment for imported 0.50-1.25 mm CRC in Iran widened to $580-615 per ton CFR Iranian ports on Wednesday, against $595-605 per ton a week earlier.

At the beginning of the week, several bookings of Kazakhstanorigin CRC were heard done within the range of $565-580 per ton FOB Aktau, or $580-595 per ton CFR Anzali.

However, by the end of the week, ArcelorMittal Temirtau had increased its offer to $600 per ton FOB Aktau, amid reduced availability of the material in the region.

Hot Dipped Galvanized Coil

Metal Bulletin’s price assessment for imported 0.50-1.25 mm HDG followed the same tendency, widening to $660-695 per ton CFR, compared with $666-680 per ton CFR last week.

Chinese 1 mm coil was available in Iran at $660 per ton CFR, while 0.5 mm HDG from Kazakhstan was offered at $695 per ton CFR.

Nevertheless, customers in Iran showed little interest in imported material because domestic 0.5 mm HDG was available at 37,000,000 rials ($1,079) per ton EXW.

Excluding the 26% import duty for HDG and the 9% VAT effective in the country, as well as 3% import costs, this price would be equivalent to $668 per ton, which is more attractive than the cost of imported material of similar thickness.