The prices of most hot rolled coil (HRC) specifications have been rising in the last two weeks in Iran, with price reductions seen for just a few sizes. Local traders who had left the market after the rapid price increase in the second and third weeks of June have been gradually coming back to the market in July due to the greater stability of HRC prices. Naturally the presence of traders in the market in July means more transactions and could create a more favorable market for sellers of HRC.
Foreign suppliers of HRC - Iran imports HRC mainly from Russia and Ukraine - have not changed their offers during the last few weeks. They are now offering 2 mm HRC at about $720-730/mt CFR Iranian northern ports, compared to $750-760/mt CFR in early June and $700-715/mt CFR in early May.
Local Iranian traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about Rials 8.80 million/mt ex-stock Anzali port for immediate delivery and cash payment, with this price indicating no change over the last two weeks, though it is down from Rials 9.00 million/mt about three weeks 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 Rials 8.65-9.75 million/mt ($821-925/mt) ex-works Esfahan, compared to Rials 8.60-9.70 million/mt ($816-920/mt) two weeks ago and Rials 8.60-9.65 million/mt ($816-916/mt) three weeks ago.
Size (mm) | Price million rials/mt 30,06,2011 | Price million rials/mt 07,07,2011 | Price $/mt 07,07,2011 | Price million rials/mt 21,07,2011 | Price $/mt 21,07,2011 |
2 | 9 | 8,8 | 835 | 8,8 | 835 |
3 | 8,65 | 8,6 | 816 | 8,7 | 825 |
4 | 8,6 | 8,6 | 816 | 8,65 | 821 |
5 | 8,9 | 8,9 | 844 | 8,8 | 835 |
6 | 9,1 | 9,2 | 873 | 9,5 | 901 |
8 | 9,6 | 9,7 | 920 | 9,7 | 920 |
10 | 9,65 | 9,7 | 920 | 9,75 | 925 |
12 | 9,6 | 9,7 | 920 | 9,75 | 925 |
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 July 18, state-owned Mobarakeh Steel sold about 41,000 mt of hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about Rial 6.83 million/mt ($648/mt) ex-works with 60-day delivery, which was unchanged from the previous few weeks, while the price was at about Rials 6.50-6.72 million/mt in May and early June this year.
US$1 = Rials 11,600 (free market rate)
US$1 = Rials 10,540 (official rate )