Iranian CRC market declines despite rises in local HRC prices

Thursday, 14 April 2011 11:18:26 (GMT+3)   |  
       

Cold rolled coil (CRC) prices have been declining in the local Iranian market in the last few weeks, despite rises in domestic hot rolled coil prices in the same period. Weak demand, especially after the two-week holiday (March 21-April 3) for the Iranian New Year, may be considered as a significant factor which has forced local suppliers to reduce their prices, while high inventory is another factor which prevents any rebound from lasting more than a few weeks. Currently, the local Iranian cold rolled coil market is mainly supplied by domestic mills, and in particular by state-owned flat steel producer Mobarakeh Steel.  

Local Iranian rolling mills which produce CRC (excluding Mobarakeh Steel) as well as traders who import CRC (i.e., CIS origin) have been selling 0.5-1.25 mm CRC at about $900-915/mt ex-stock Tehran, down from $895-940/mt about four weeks ago and up from $880-910/mt about eight weeks ago. The gap between minimum and maximum prices of CRC in the Iranian market has recently narrowed from US$45/mt to just US$15/mt.

Local traders are offering cold rolled coils produced by Mobarakeh Steel at about $925-940/mt ex-stock Tehran, which is about $10-25/mt higher than the prices of four weeks ago, The price in the market of Mobarakeh Steel's cold rolled coil is usually about $10-20/mt higher than prices of material of CIS origin or material from other local mills due to its quality and reputation.

On April 4, Mobarakeh Steel sold about 52,000 mt of cold rolled coil through the Iran Mercantile Exchange (IME) at about $810/mt ex-works with 75-day delivery and for payment in cash, which is about $10/mt higher than its previous supply via the IME in early March and $20/mt higher than its sales price at the IME in early February. Mobarakeh has slightly raised its CRC prices due to the rising trend seen in the local market in February and March this year.


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