In recent days in the Iranian market hot dip galvanized coil prices have been coming down, just like the prices of other flat and long products in this country. 0.50-1.00 mm thick hot dip galvanized coils are now changing hands at $935-1,185/mt on ex-stock Tehran basis for immediate delivery and for cash payment. Hot dip galvanized coils were in a price range of $950-1,240/mt in the local market just the week before and stood at $960-1,290/mt at the beginning of December.
On Monday, December 29, Mobarakeh Steel, one of the main domestic producers, sold about 1,700 mt of HDG coils (against demand for over 4,000 mt) at a price of about $873/mt ex-works for 100-day delivery and deferred payment.
Iran's hot dip galvanized coil imports come principally from Russia, Kazakhstan, India and China, and the prices of these imports in the local market are usually close to the price levels of domestic production. In recent years foreign suppliers of hot dip galvanized coil have seen their market share decline in Iran as a number of local galvanizing mills have come on stream. As a result, the major part of Iranian market demand for hot dip galvanized coils is now met by local mills.
Market leader Mobarakeh Steel has been operating a capacity of 200,000 mt per year of hot dip galvanized coil for the last few years. Fajre Sepahan Galvanizing Industries Co., which was privatized last year, has an annual capacity of about 120,000 mt, Other privately-owned galvanizing mills include Seven Diamond Industries Co. with an annual capacity of 70,000 mt and also Semnan Rolling and Tube Mills Group which in 2007 started operating a capacity of 250,000 mt. Finally, Chahar Mahal-e-Bakhtiyari Auto Sheet Co., which is currently under construction. is expected to produce special galvanized sheets for bodies of automotive vehicles with an annual capacity of 400,000 mt.