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Iran flat steel import slows on currency rate issues-The 20th China(Guangzhou) Int’l Forging Industry Exhibition
4/24/2018 Forging Industry Exhibition |
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Financial Tribune reported that flat steel import trade in Iran has been almost non-existent in the past several weeks, because of currency exchange rate issues. One of the major concerns for traders selling material to Iran and Iranian customers has been the 20% devaluation of the country’s national currency, the rial, since the beginning of April.
On April 18, the rial was trading at 57,000 to USD 1 in the open market, while the official exchange rate was 42,127 to USD 1. On April 1, the equivalent figures were 47,680 to USD 1 (free market) and 37,682 to USD 1 (official). In addition, the euro, the currency used in a significant number of Iran’s flat steel import trades, strengthened against dollar, which pushed up the equivalent euro value.
Russian mills, which supply around half of Iran’s flat steel import volumes, trade their products in euros because the dollar cannot be used officially in Iran due to remaining US trading sanctions. Kazakhstan, another large supplier of flat steel to Iran, trades its material in dollars. In these conditions, buying activity in Iran was significantly subdued.
Offers of Russia-origin hot-rolled coil were reported at EUR 475 ($588) per tonne FOB Astrakhan or USD 608 per ton CFR Iranian northern port of Anzali, taking the estimated cost of freight to be around USD 20 per tonne.
Market participants said no price would be attractive now in Iran because of the currency rate issues.
Traders said mills would agree to decrease prices to EUR 465-470 per tonne FOB, equivalent to USD 595-600 per tonne CFR, if a firm bid were made.
The 20th China(Guangzhou) Int’l Forging Industry Exhibition
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