TEHRAN: Import prices for hot-rolled coil in Iran continued to trend upward over the week ending August 9, as offers from the mills of Commonwealth of Independent States rose further, supported by tight availability of the material. Offers of 2-mm HRC from Russian producer Magnitogorsk Iron & Steel Works (MMK) increased by €10 ($12) per ton over the week, to €460 ($542) per ton FOB Astrakhan, according to market sources reported by Metal Bulletin. This would be equivalent to $557-558 per ton CFR, considering the estimated cost of freight to the Iranian northern port of Anzali, which vary within the range of $15-16 per ton. Other CIS suppliers were said to be out of the market. Recent bookings with compatriot mill Severstal were heard done around €450 ($530) per ton FOB Astrakhan last week.
Meanwhile, Kazakhstan’s ArcelorMittal Temirtau was said to be sold out until the end of September. MMK’s new price was considered to be high by customers who said the current prices of imported material from stockists in Iran are significantly lower. However, the supplier was unwilling to provide discounts, in light of the continuing upward price trend in the global markets. Recent HRC offers from stockists in Iran were heard at $750 per ton on truck in Anzali. This price includes the 20% import duty on HRC effective in the country as well as 9% VAT. Excluding duties, the price would be $533 per ton on truck.
Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $557-558 per ton CFR Iranian ports on August 9, up from $535-550 per ton a week earlier. Metal Bulletin’s weekly price assessment for imported cold-rolled coil in Iran moved down slightly to $604-605 per ton CFR Iranian ports on Wednesday, against $606-607 per ton last week. The decline was due to a change in euro-dollar exchange rate. CRC offers from MMK remained unchanged in euros at €500 per ton FOB Astrakhan, while the US dollar equivalent price dropped by $2 per ton to $589 per ton FOB.