Hot rolled coil (HRC) prices have continued their rising movement during the last two weeks in Iran. Currently, local traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about $645/mt ex-stock Anzali port (southern Iranian port on Caspian Sea), up about $15/mt from two weeks ago and up about $45-55/mt from four weeks ago. Higher thicknesses of HRC (3-12 mm), which are mostly supplied to the local market by main domestic flat steel producer Mobarakeh Steel, are now standing at prices of about $635-700/mt ex-works Esfahan, up from $635-680/mt two weeks ago and from $625-655/mt four weeks ago.
The current rising trend of HRC prices in the local Iranian market has been ongoing since the end of June this year. Most Iranian market players are expecting further price increases for HRC and other flat and long steel products in the domestic market in the coming days due to global circumstances, though some doubt that such a trend will be able to continue for more than a few weeks.
On Monday, August 23, Mobarakeh Steel sold about 115,000 mt of hot rolled coil to the local market through the Iran Mercantile Exchange (IME) at $580/mt with 60-day delivery - a price which is at the same level as Mobarakeh's previous supply to the market last week, but which is up by about $10/mt from its supply via the IME two weeks ago.
In the first four months of the current Iranian year (started March 21), Iran imported 762,000 mt of HRC, up about 18 percent compared to the volume of around 570,000 mt in the same period of the last Iranian year, according to the Iranian customs authorities. Iran imports its shortfall of hot rolled coil products from CIS countries, especially Russia, Ukraine and Kazakhstan.