Imported Flat Steel Buyers Bid Lower

The upward trend in the global flat steel market has affected Iranian flat steel prices, but buyers are still looking for discounts, Metal Bulletin learnt on May 3.

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.

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.”

source: Financial Tribune