Russian steelmaker MMK offered hot rolled coil at €390-420 ($426-459) per ton FOB Astrakhan, depending on the material size.
The estimated cost of freight to the Iranian port of Anzali for MMK’s material is around $20 per ton.
A buyer, intending to buy around 20,000 tons of HRC from MMK, was bidding €375 ($409) per ton FOB for the material. This was equivalent to $429 per ton CFR to Iran, according to Financial Tribune.
Chinese HRC from traders was offered at $450-460 per ton CFR.
Currently, there is a 20% import duty imposed on HRC and cold rolled coil brought into Iran, while hot dipped galvanized coil is subject to 26% duty.
Metal Bulletin’s weekly assessment of import prices for 2 mm HRC in Iran rose to $446-475 per ton CFR Iranian ports on May 3, from $435-472 per ton CFR last week.
The report’s price assessment of CRC imports in Iran increased to $500-527 per ton CFR Iranian ports on Wednesday, from $490-520 per ton CFR last week.
Offers from China were heard at $500 per ton CFR southern ports of Iran.
MMK offered material at €440-465 ($480-508) per ton FOB Astrakhan, which would be equivalent to $500-527 per ton CFR Anzali.
“Demand is not bad. The market has not been buying much for the past four months, so it is good now,” a trader said.
Metal Bulletin’s price assessment for imported HDG in Iran was $562-570 per ton CFR Iranian ports on Wednesday, falling from $540-545 per ton CFR the previous week.
Offers from China were heard at $562-590 per ton CFR southern ports of Iran.
A buyer was bidding $520 per ton CFR for the product.
“The market is stable in Iran, but demand is not strong. We have 26% duty on HDG, and 9% VAT, so these prices are too high,” he said. “But we have to import [products of] certain thicknesses, as they are not produced in Iran.”