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.