Flat Steel Importers Seek Lower Prices

Buying activity in the Iranian flat steel import market was limited last week, with customers looking for lower prices amid weaker domestic demand and the downward sentiment afflicting the global steel market.

"The domestic market is not so good here in Iran these days,” one source said, adding that hot-rolled coil prices have dropped by another $30 per ton over the past week, Metal Bulletin reported.

Iranian weekdays start on Saturday and end on Thursday; Friday is the weekend. Many businesses are closed or work half-time on Thursdays.

Metal Bulletin’s price assessment for imported 2-mm HRC in Iran decreased to $565-605 per ton CFR Iranian ports on Sept. 27, compared with $583-610 per ton a week earlier.

A cargo of HRC from Russia’s Magnitogorsk Iron & Steel Works, otherwise known as MMK, was booked at €490 ($576) per ton in the week ending Sept. 27, according to two sources.

The estimated cost of freight across the Caspian Sea from Astrakhan in Russia to Anzali in northern Iran has recently increased to $25 per ton, according to market participants, due to the reduced availability of vessels.

However, a majority of customers were ready to pay $565-570 per ton CFR for CIS-origin HRC.

An unsold MMK cargo of 10,000 tons of HRC was on offer at €475-480 per ton FOB Astrakhan.

“One company booked it, but failed to give an advance,” a source said, adding that they were ready to book material at €460 per ton FOB.

Offers from Kazakhstan’s ArcelorMittal Temirtau were heard at $570 per ton FOB Aktau, unchanged week-on-week. This would be equivalent to $585-586 per ton CFR in Anzali, considering the current cost of freight from Aktau of around $15-16 per ton.

Several bids were heard around $550 per ton FOB, but the mill declined them.

Metal Bulletin’s price assessment for imported cold-rolled coil in Iran remained unchanged at $620-625 per ton CFR Iranian ports on Wednesday.

ArcelorMittal Temirtau was offering material at $610 per ton FOB Aktau, or $625-626 per ton CFR.

MMK material was available at €530 per ton FOB Astrakhan.

source: Financial Tribune

Steel Magnitogorsk Iron & Steel Work ArcelorMittal