Hot rolled coil prices are still coming down in the Iranian market, while Mobarakeh Steel - the main Iranian supplier of flat products - has maintained its prices unchanged for a few week now. 2-5 mm hot rolled coil, the specification which has the largest market share of all flat products, is being transacted by local traders at $610-630/mt, i.e. $10-20/mt higher than during the previous week.
Mobarakeh Steel sold hot rolled coil of 2.5-15 mm thickness at $537/mt to local traders or end-users last Monday, December 22, with one-to-two month delivery for cash payment. Mobarakeh has not changed its sales price of hot rolled coil since a few weeks ago when it reduced its prices substantially. Ferro-Gillan, a privately-owned supplier of hot rolled coil, is selling its products at $540-550/mt, while local traders may sell Ferro-Gillan products at even less than this price range due to their need for cash.
Local demand for flat products, especially for hot rolled coil, is not so weak in the Iranian market at present; however, the high inventory which had piled up since last year means that there is a lack of support for prices. The existing market stagnation forces some traders to sell their material even at a loss, especially when they need money or when they intend to clear their stock.
Iran imported about 620,000 mt of hot rolled coil in the first eight months of the current Iranian year (21.03.2008-20.11.2008) while it imported about 410,000 mt of the same material in corresponding period of last year, according to the data from Iran's customs authorities.