Metal Bulletin also reported on Wednesday that the price increase was also supported by the reduced availability of the material from Iran's largest suppliers–Russia and Kazakhstan. Demand for flat steel products in Iran has improved recently, with the pipe and profile markets starting to show signs of recovery, sources said.
One market participant said demand for rolled steel is high in Iran while supply is tight, so imported and domestic prices have risen and suppliers from the Commonwealth of Independent States continue to elevate offers.
"Therefore, Russian and Kazakhstan mills do not have exact offers at the moment," Financial Tribune also quoted him as saying.
Hot-Rolled Coil
Recent bookings of Russian HRC were heard at €415-420 ($479-485) per ton FOB Astrakhan. This would be equivalent to $494-501 per ton CFR Iran, considering the cost of freight to the northern port of Anzali at $15-16 per ton. The latest sales of Kazakhstan-origin HRC were done at $465 per ton FOB Aktau, or $470-473 CFR Anzali, market participants said. No new offers were heard from Kazakhstan last week. Iranian weekdays start on Saturday. Friday is the weekend.
"I think AMT is not offering anything today, as they are waiting for the best price," said a trader. There were no official offers from Russia’s Magnitogorsk Iron & Steel Works (MMK), sources said, noting that the supplier has recently been offering limited volumes for the export markets. One source said that the mill was giving indications of offers at €440 ($508) per ton FOB Astrakhan for September-shipment material.
This would be equivalent to $523-524 per ton CFR Anzali. Meanwhile, offers from a compatriot mill Severstal were heard coming at €420-425 ($485-491) per ton FOB Astrakhan, or $500-507 per ton CFR.
Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $470-500 per ton CFR Iranian ports on July 19, up from $468-490 per ton the week before.
Cold-Rolled Coil
Metal Bulletin’s price assessment for imported CRC in Iran was $548-581 per ton CFR, against $552-553 per ton CFR a week earlier. Recent bookings of CRC from Kazakhstan were heard at $540 per ton FOB Aktau, or $ 548-549 per ton CFR Anzali. Indications of offers from MMK were reported as high as €490 ($566) per ton FOB Astrakhan, or $581-582 per ton CFR Anzali. Import HRC and CRC are subject to 20% import duty and 9% VAT tax in Iran.