Iranian Flat Steel Imports Slump on Rumors of Duty Cut

The recent news about a possible cut in the import duty on flat steel products entering Iran has led to a halt in trading, Metal Bulletin learnt on December 28.

The exact date when the regulation will come into force is not yet clear, hence potential customers have adopted a wait-and-see approach.

“Tariff rates on flat steel imports will be cut down by half to 10% in a bid to balance the domestic steel market,” said Deputy Industries, Mining and Trade Minister Jafar Sarqeyni earlier this month.

“The supply of flat steel in the domestic market is slightly lower than demand, which can be balanced by imports.”

Sarqeyni noted that the import of about 700,000 tons will be sufficient for the current Iranian year (ending March 20, 2017).

Last fiscal year witnessed the import of 5.2 million tons of flat steel.

“Local prices went down because of the [rumored] cut. So anybody who ships now and still must pay the initial customs [costs] would make losses. So nobody is shipping for now,” an international trader told Metal Bulletin.

  Hot Rolled Coil

Current offers of 2mm hot rolled coil from Russia’s MMK hovered at €490-510 ($510-533) per ton CFR Anzali, depending on payment terms.

Chinese material was reported to be available at $530-570 per ton CFR in the southern ports of Iran, depending on payment terms and supplier.

However, no deals have been heard concluded at those prices, with most market participants saying that they are “too high”.

Recent contracts for import HRC were signed with CIS suppliers at around $470 per ton CFR Anzali, one market source said after the assessment was filed.

Metal Bulletin’s price assessment for imported HRC narrowed to $510-530 per ton CFR Iranian ports on Wednesday, compared with $510-570 per ton CFR the week before.

  Cold Rolled Coil

The assessment for imported cold rolled coil was unchanged at $550-560 per ton CFR Iranian ports.

Russian CRC was available at $550-560 per ton CFR Anzali, sources said, while Chinese offers were coming in at $625-655 per ton CFR southern ports, depending on payment terms.

However, no new deals were reported concluded.

  Hot Dipped Galvanized Coil

China-origin hot dipped galvanized coil was available at $670-700 per ton CFR.  Metal Bulletin’s assessment for imported HDG in Iran was $670-700 per ton CFR Iranian ports, compared with the preceding week’s $660-670 per ton CFR.