Economy, Business And Markets

Higher HRC Import Prices Yet to Be Accepted

Higher HRC Import Prices Yet to Be AcceptedHigher HRC Import Prices Yet to Be Accepted

A significant increase in prices for imported hot rolled coils is observed in Iran amid the general upward trend in the global market.

Local customers, however, prefer to take a wait-and-see approach and primarily purchase domestic products, Metal Expert, a Ukraine-based provider of news and analysis on steel products and steelmaking raw materials industries, reported.

Prices for 2 mm HR coils from Russia to Iran have gone up by €25-30/ton on average over the month to €365-370/ton FOB. Offer prices denominated in US dollars are at some $421-426/ton CFR Anzali.

Iranian customers have not yet shown interest in Russian material due to the considerable price increase. At the same time, a number of market participants still report no offers from Kazakhstan.

“ArcelorMittal Temirtau does not offer us HR coils as they have no volumes for export,” an Iranian trade company representative said.

The latest offers from the producer early this week were at the level of $422/ton CFR Anzali, according to some traders.

Prices for the Chinese material at the level of $435-445/ton CFR are also considered by Iranian customers too high.

At the same time, business activity on the Iran Mercantile Exchange surged after the Iranian holidays earlier this month. As a result, from September 19 to October 19, Mobarakeh Steel Company managed to sell some 270,000 tons of 2.5-15 mm flats for November-December delivery at $432-455/ton ex-warehouse.

It is reported that MSC currently offers no 2 mm material.

Stockists in Iran are currently offering 3-15 mm domestic material at $478-496/ton ex-warehouse. Imported HR coils from stock are available at $567/ton, including an import duty of 20%.

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