Just like long products, the flat products market in Iran experienced a similar uprising trend after the Iranian New Year holidays (21.03.2007 - 02.04.2007), as predicted in our last analysis. Mobarakeh Steel Co., the country's main flats supplier strongly hiked its prices for all flat products (hot rolled coil, cold rolled coil, hot dip galvanized, pre-painted coil, tin plate) in recent days (by about $100/mt). Of course, we shouldn't ignore the fact that Mobarakeh Steel Co., like other producers, follows market trends and new developments in the global as well as local market when deciding to increase its prices.
During March 2007 before the New Year holidays, we observed a price increase of 20-25 percent in the local flat products market due to Mobarakeh's decision to suspend its local sales for two weeks. During the last ten days, Mobarakeh Steel Co.and Ahvaz Rolling and Pipe Co. have sold about 100,000 mt of flat products. However, demand is so large that there is a rush to purchase in the market which cannot be blocked by forward sales.
Perhaps prompt delivery could nullify such a strong trend at least temporarily. But while Mobarakeh Steel Co. sells its products mostly by terms of forward sales (delivery after 2-3 months), it cannot change the market circumstances effectively.
Fortunately, Iranian traders and industries are importing flat products from CIS countries, and recently from China also, which has built up some good inventory. This explains why flat product prices have increased moderately compared with I-beam.
Nevertheless, there has been an increase of $100-120/mt in three groups of flat products compared with one month ago:
Product | Price | Date |
HRC (3-12 mm) | $680-760/mt | March 6, 2007 |
| $750-850/mt | April 9, 2007 |
CRC (0.50-2.50 mm) | $680-730/mt | March 6, 2007 |
| $800-860/mt | April 9, 2007 |
HDG (0.50-2.50 mm) | $900-1.070/mt | March 6, 2007 |
| $1,000-1,200/mt | April 9, 2007 |