EghtesadOnline: Prices for imported flat steel in Iran continued to climb over the week that ended on August 30, as deals and offers were reported at higher prices.
Market participants cited reduced availability of the material from Russia, which is one of the largest suppliers to the Iranian market, noting that this was one of the reasons for the continuing price growth.
This was despite the fact that most Iranian customers and traders that supply material to the region, preferred to adopt a wait-and-see position, expecting a downward correction of prices in the near term because of fluctuations in China, Metal Bulletin reported.
Hot rolled coil
There was a booking of hot-rolled coil from Russia’s Magnitogorsk Iron & Steel Works (MMK) reported at €480 ($576) per ton CFR, according to Financial Tribune.
Another cargo from compatriot mill Severstal was purchased at €470 per ton FOB Astrakhan.
The estimated cost of freight to the northern Iranian port of Anzali is $15-16 per ton.
Some market participants in the country doubted that the price from MMK would be accepted, referring to the expectations of lower prices. But they gave no suggestion of what a workable price would be.
Recent offers of 2-mm HRC from MMK had been reported within the range of €474-480 per ton FOB Astrakhan.
Offers from Kazakhstan’s ArcelorMittal Temirtau have also been heard in the market after a break of almost one month, as the producer was said to have sold out its September volumes early in August.
Offers of October production coils were reported at $565 per ton FOB Aktau. The estimated cost of freight to Iran is around $10 per ton.
Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $575-584 per ton CFR Iranian ports on August 30, up from $546-568 per ton a week earlier.
The price assessment for imported cold-rolled coil in Iran was $620-633 per ton CFR Iranian ports on Wednesday, against $621-622 per ton the week before.
A cargo of Asia-origin CRC was heard booked in the country at $620-621 per ton CFR, according to one source.
Meanwhile, Russia-origin CRC was available in the country at €515 per ton FOB Astrakhan.
Considering the estimated cost of freight to the destination of $15-16 per ton, this would be equivalent to $633-634 per ton CFR.