Cold rolled coil prices continue to rise in Iran

Cold rolled coil (CRC) prices have been soaring in the last few weeks in Iran in line with developments in global steel prices and especially flat steel product prices. Local Iranian traders are currently offering CIS origin cold rolled coils of 0.5-1.25 mm thickness at about $855-900/mt ex-stock Tehran, up from $800-880/mt two weeks ago. The cold rolled coil produced by main domestic flat steel supplier Mobarakeh Steel usually costs about $10-15/mt more than CIS origin material.
 
Mobarakeh Steel, as the principal domestic supplier of cold rolled coil, exerts a strong influence on the local market although the global prices of flat steel products also exert a general influence on the Iranian market. On August 23, Mobarakeh sold some batches of cold rolled coil through the Iran Mercantile Exchange (IME) at about $750/mt ex-works with 90-day delivery and for cash payment. Mobarakeh's prices are usually lower than local market prices, but it is not so easy to purchase from Mobarakeh directly, especially due to its delivery periods of two to three months.
 
Iran's imports of cold rolled coil have been declining in the last few years as Mobarakeh Steel has increased its output and as a few other suppliers of cold rolled coil have come on stream. Iran imported 156,000 mt of cold rolled coil and sheet in the first four months of the current Iranian year (started March 21), i.e., down about 76 percent from around 275,000 mt in the corresponding period of the last Iranian year - according to the newly published data from the Iranian customs authorities.