EghtesadOnline: Import prices for hot-rolled coil have continued to rise in Iran, as suppliers—which are now mainly Russian mills—have issued higher offers.
The growth has been driven by the general optimism in global markets, which was sparked by the increase in Chinese export prices.
However, Iranian customers and traders, which supply material to the region, did not share this optimism and preferred to take a wait-and see position, expecting a downward correction of prices in the near term, Metal Bulletin reported.
“We were about to book 5,000 tons [of HRC] at €450 [$530] per ton FOB Astrakhan, but then Magnitogorsk Iron & Steel Works [MMK] increased the price,” Financial Tribune quoted one trader as saying.
The estimated cost of freight for the 5,000-ton cargo from Astrakhan to the northern Iranian port of Anzali is around $15-16 per ton, sources said.
Recent offers of 2-mm HRC from MMK rose to €470-480 per ton FOB Astrakhan.
“The new price does not fit the Iran market. No one is buying, all deals are pending,” the trader added.
Market participants noted that, apart froms the rising prices, buying activity in Iran has been restricted by a 20% import duty.
Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $545-568 per ton CFR Iranian ports on August 23, widening from $555-562 per ton a week earlier.
The price assessment for imported cold-rolled coil in Iran narrowed upward slightly to $621-622 per ton CFR Iranian ports on Wednesday, against $615-622 per ton the week before. Recent offers of MMK-produced CRC were heard in Iran at €515 per ton FOB Astrakhan. This would be equivalent to $621-622 per ton CFR, considering the cost of freight to Anzali at $15-16 per ton.