Hot rolled coil (HRC) prices in Iran have risen significantly in the last few weeks. High demand, increased prices of hot rolled coil from foreign suppliers, the appreciation of foreign currencies against the Iranian rial, and extra charges on imports due to sanctions against Iranian banks are some of the main factors which have influenced hot rolled market prices so strongly in the last few weeks. HRC prices in the Iranian market had been stable until July this year, followed by a general rising trend from the second half of July up to the present, allowing for some brief periods of stability.
Foreign suppliers of HRC - Iran imports HRC mainly from Russia and Ukraine - have continued their policy of hiking export prices during the last few weeks. They are now offering 2 mm HRC at about $760-770/mt CFR Iranian northern ports for production in October and delivery in November or December, compared to $740-750/mt CFR in early September and $730-740/mt CFR in early August.
Local Iranian traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about Rial 10.40 million/mt ($981/mt) ex-stock Anzali port for immediate delivery and cash payment, compared to Rial 9.85 million/mt ($929/mt) in early September and Rial 9.25 million/mt ($873/mt) in early August and Rial 8.80 million/mt ($830/mt ) in early July.
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 Rial 9.60-10.05 million/mt ($906-948/mt) ex-works Esfahan, compared to Rial 9.15-9.90 million/mt ($863-934/mt) in early September and Rial 8.85-9.80 million/mt ($835-925/mt) in early August and Rial 8.60-9.70 million/mt ($788-915/mt) in early July.
Sizes (mm) |
Million rials/mt (05.07.2011) |
Million rials/mt (05.08.2011) |
Million rials/mt ( 05.09.2011) |
Million rials/mt (22.09.2011) |
2 |
8.80 |
9.25 |
9.85 |
10.40 |
3 |
8.60 |
8.85 |
9.35 |
9.65 |
4 |
8.60 |
8.90 |
9.20 |
9.70 |
5 |
8.90 |
9.00 |
9.15 |
9.60 |
6 |
9.20 |
9.45 |
9.80 |
10.05 |
8 |
9.70 |
9.75 |
9.90 |
10.05 |
10 |
9.70 |
9.75 |
9.90 |
10.05 |
12 |
9.70 |
9.80 |
9.90 |
10.00 |
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 Sept. 19, state-owned Mobarakeh Steel sold about 50,000 mt of hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about Rial 8.19-8.64 million/mt ($773-815/mt) ex-works with 90-day delivery, while it had sold HRC at about Rial 7.85-8.39 million/mt ($740-792/mt) in early September and at Rial 6.83 million/mt ($644/mt) in July and early August.
US$1 = Rial 10,600 (official rate)