Hot rolled coil (HRC) prices in Iran have been rising in the last few weeks, just like prices of other flat and long steel products, mainly due to the depreciation of the Iranian rial against foreign currencies.
As expected by most market participants, the depreciation of the Iranian rial has directly impacted the domestic market for steel. The increased price of steel would help secure high profit margins for traders or rolling mills which import slab, HRC or other steel products.
CIS suppliers of HRC had offered HRC at $650-660/mt CFR in the last weeks of December for cash payment and delivery of two to three months, but they have not yet returned to the Iranian market after the New Year holiday.
Local Iranian traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about Rial 10.00 million/mt ($891/mt) ex-stock Anzali port for immediate delivery and cash payment, up from Rial 9.80 million/mt the week before.
Higher sizes of HRC, i.e., 3-12 mm produced by main domestic flat steel supplier Mobarakeh Steel, are now standing at prices of about Rial 10.10-10.15 million/mt ($900-905/mt) ex-works Esfahan, compared to Rial 9.80-9.95 million/mt the week before and Rial 9.50-9.75 million/mt two weeks ago.
Average HRC prices in Iran can be viewed in the SteelOrbis price reports section.
On January 2, state-owned Mobarakeh Steel sold hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about Rial 8.64-8.93 million/mt ($770-796/mt) ex-works with 50-day delivery, while it had sold HRC via the IME at about Rial 8.55-8.64 million/mt in early December and at Rial 8.43-8.72 million/mt in early November.
US$1 = Rial 11,220 (official rate)