Hot rolled coil (HRC) prices have maintained their rising trend in Iran over the last two weeks amid the depreciation of the Iranian rial against foreign currencies.
Higher prices have been accepted by buyers and the transaction volume has been rising gradually. Besides the weakening of the Iranian currency, international banking sanctions have also been impacting the domestic steel market in Iran, blocking almost all transactions via letter of credit.
Local Iranian traders who import HRC from CIS countries are currently offering CIS origin 2 mm HRC at about Rial 10.40-10.45 million/mt ($922/927 mt) ex-stock Anzali port for immediate delivery and cash payment, up from Rial 10.00 million/mt about one week ago and up from Rial 9.80 million/mt two 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 Rial 10.35-10.45 million/mt ($918-926/mt) ex-works Esfahan, compared to Rial 10.10-10.15 million/mt about one week ago and Rial 9.80-9.95 million/mt two weeks ago.
On January 16, state-owned Mobarakeh Steel sold hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about Rial 8.64-8.93 million/mt ($766-792/mt) ex-works with 60-day delivery, while it had sold HRC via the IME at about Rial 8.55-8.64 million/mt in early December and at Rial 8.43-8.72 million/mt in early November.
US$1 = Rial 11,280 (official rate)