HRC prices on the way up in Iran

Hot rolled coil (HRC) prices have risen significantly in the last few weeks in Iran. Local traders as well as domestic mills have been able to raise their HRC prices successfully due to high demand, the increased strength of foreign currencies, and extra charges for imports.

Foreign suppliers of HRC - Iran imports HRC mainly from Russia and Ukraine - have raised their prices during the last few weeks. They are now offering 2 mm HRC at about $740-750/mt CFR Iranian northern ports, compared to $730-740/mt CFR  in early August.    

Local Iranian traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about Rial 9.85 million/mt ($929/mt) ex-stock Anzali port for immediate delivery and cash payment, which represents an increase of more than Rial 0.50 million/mt ($47/mt) compared to one month ago and a rise of about Rial 1.00 million/mt ($94/mt) compared to two months ago.

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 9.15-9.90 million/mt ($863-934/mt) ex-works Esfahan, compared to Rial 8.85-9.80 million/mt ($835-925/mt) in early August and Rial 8.60-9.70 million/mt in early July.

All the above prices are ex-works Esfahan, apart from 2 mm thickness which is ex-stock Anzali port (Iranian port, southern Caspian Sea).

On September 6 , state-owned Mobarakeh Steel sold about 57,000 metric tons of hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about Rial 7.85-8.39 million/mt ($740-792/mt) ex-works with 75-day delivery, while it had sold the same material at Rial 6.83 million/mt ($644/mt) in July and in early August and at about Rial 6.50-6.72 million/mt ($634/mt) in May and early June. 

US$1 = Rials 10,600 (official rate)