Modest Interest in Iran's Imported Flat Steel

Buying activity in the Iranian flat steel import market remained limited over the past week due to the traditional Ramadan slowdown, Metal Bulletin reported. As such, prices have not seen any significant change.

Russia-origin 2mm thick hot rolled coil was available at around €390 ($437) per ton FOB Astrakhan.

The cost of freight to Iran's n northern port of Anzali is about $15-16 per ton.

One trader was said to be in negotiations with Russia’s Magnitogorsk Iron & Steel Works, otherwise known as MMK, however, results of the meetings have not been reported.

Market observers say acceptable rates would be between €380-385 ($426-431) per ton FOB Astrakhan.

Meanwhile, offers of Kazakhstan-origin material were heard at $420 per ton FOB Aktau.

With cost of freight to Anzali being $8-9 per ton, this would be equivalent to $428-429 per ton CFR.

Sources also said that a cargo of "substandard" HRC had been booked at about $410 per ton CFR over the past week, although it was not immediately clear what "substandard" meant in this context.

Metal Bulletin’s weekly assessment for imported 2mm HRC in Iran remained largely unchanged over the week at $430-445 per ton CFR Iranian ports on June 14.

Offers of cold rolled coil from MMK remained at €445 ($499) per ton FOB Astrakhan.

CRC from Kazakhstan’s ArcelorMittal Temirtau was available at $500 per ton FOB Aktau, sources said.

The mill was ready to provide a $10-per-ton discount for any order of 5,000 tons and above.

No new deals were reported this week.

Metal Bulletin’s weekly assessment for CRC imports in Iran remained unchanged at $499-509 per ton CFR.

Chinese 1mm thick hot dipped galvanized coil was on offer in Iran at $555-556 per ton CFR southern ports.

However, customers have shown little interest in imported HDG due to the availability of domestic material at a similar price.

"We want to buy 0.40mm thick coil [which is traditionally more expensive] at this price," one trader said.

Imported HDG coil is subject to a 26% import duty in Iran, while HRC and CRC face duties of less than 20%.