In Iran, hot rolled coils (HRC) of 2-12 mm thickness, mostly products of main domestic flats producer Mobarakeh, are currently being offered by traders in a price range of about Rial 10.15-10.90 million/mt ($828-889/mt), ex-stock Tehran, for cash payment and for immediate delivery. Some softening has been observed in prices of 2 mm HRC in Iran in recent weeks.
Local Iranian traders do not expect price reductions as new HRC import orders will have a higher cost than existing price levels in the domestic market. Traders state that, considering the existing price level of HRC in the local market, there is no margin for traders at present.
Local Iranian traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about Rial 10.15-10.20 million/mt ($828-832) ex-stock Anzali port for immediate delivery and cash payment, down from Rial 10.40-10.45 million/mt about three weeks ago and up from Rial 9.80 million/mt six weeks before.
Meanwhile, 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 10.45-10.75 million/mt ($705-877) ex-works Esfahan, up from Rial 10.35-10.45 million/mt three weeks ago and up from 9.50-9.75 million/mt six weeks ago.
On February 6, 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 ($705-728/mt) ex-works with 60-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 12,260 (official rate)