Cold rolled coil (CRC) prices have been rising steadily in the last few weeks in the local Iranian market after the stagnation seen in the market in the second half of June and July. The general price increase in both long and flat steel products in Iran in August and September has influenced the CRC market in Iran, while low or zero supply of some sizes of CRC from Mobarakeh Steel - the country's main flat steel supplier - has contributed to rises in prices of such sizes.
Local Iranian rolling mills which produce CRC (excluding state-run Mobarakeh Steel) have been selling 0.5-1.25 mm CRC at about Rial 10.40-10.65 million/mt ($965-988/mt) ex-works, up from Rial 9.90-10.20 million/mt ($918-946/mt) at the end of August and also up from Rial 9.50-9.90 million/mt ($881-918/mt) at the end of July. CRC produced by Mobarakeh usually has a price about Rial 0.10-0.30 million/mt (approx. $10-30/mt) higher than other local suppliers due to its higher quality. The local Iranian CRC market is largely dominated by Mobarakeh as the main supplier, with Mobarakeh frequently influencing local market prices due to its market share.
On September 27, Mobarakeh Steel sold about 5,600 metric tons of CRC at Rial 9.03 million/mt ($838/mt) with three-month delivery and cash payment via the Iran Mercantile Exchange (IME), while it had been selling the same material at Rial 8.68 million/mt ($805/mt) in June, July and August.
US$1 = Rial 10,780 (official rate)