TEHRAN: Prices for imported flat steel products in Iran increased over the week ended Oct. 25 amid reduced availability of materials from Russia. Shipments from the Russian port of Astrakhan have been restricted in the past several weeks because in autumn, Russia is focused on grain-crop exports and there is a shortage of ships for other cargoes. In these conditions, the cost of freight from Astrakhan to the northern Iranian port of Anzali increased to $55 per ton, against $25 per ton in early October, Metal Bulletin reported. Metal Bulletin’s price assessment for imported 2-mm HRC in Iran was $570-575 per ton CFR Iranian ports on October 25, compared with $565-575 per ton CFR a week earlier. Offers from Russian steelmaker MMK remained unchanged at €470 ($553) per ton FOB Astrakhan. Considering the increased cost of freight, this would be equivalent to $608 per ton CFR, which is unworkable for Iranian customers.
In any case, it is extremely difficult to find a vessel even at such a high price, sources said. The weakening of competition spurred Kazakhstan’s ArcelorMittal Temirtau to increase its HRC offer by $10 per ton, to $560 per ton FOB Aktau. The estimated cost of freight from Aktau to Anzali is $15 per ton. The price assessment for imported 0.50-1.25 mm CRC in Iran widened to $580-615 per ton CFR Iranian ports on Wednesday, against $595-605 per ton a week earlier. At the beginning of the week, several bookings of Kazakhstanorigin CRC were heard done within the range of $565-580 per ton FOB Aktau, or $580-595 per ton CFR Anzali. However, by the end of the week, ArcelorMittal Temirtau had increased its offer to $600 per ton FOB Aktau, amid reduced availability of the material in the region.
Metal Bulletin’s price assessment for imported 0.50-1.25 mm HDG followed the same tendency, widening to $660-695 per ton CFR, compared with $666-680 per ton CFR last week. Chinese 1 mm coil was available in Iran at $660 per ton CFR, while 0.5 mm HDG from Kazakhstan was offered at $695 per ton CFR. Nevertheless, customers in Iran showed little interest in imported material because domestic 0.5 mm HDG was available at 37,000,000 rials ($1,079) per ton EXW. Excluding the 26% import duty for HDG and the 9% VAT effective in the country, as well as 3% import costs, this price would be equivalent to $668 per ton, which is more attractive than the cost of imported material of similar thickness.
