The most recent sales of hot rolled coil by Mobarakeh Steel have disturbed the local Iranian market to such an extent that most traders have now closed their sales and are instead looking forward to next week or even later weeks.
However, some traders are offering ready stock hot rolled coil of 2-5 mm thickness at about $590-620/mt ex-stock Tehran, i.e. at about $40-50/mt less than last week and about $60-70/mt less than two weeks ago. Nevertheless, there are no significant transactions at this price range as most sellers and even buyers have become somewhat confused in the existing market situation and are unable to make up their minds at present.
Last Monday Mobarakeh Steel supplied hot rolled coil of 2.5-15 mm thickness through the Iran Mercantile Exchange (IME) at about $516/mt ex-works for 35-day delivery and deferred payment - a price which was about $200/mt less than the producer's previous sales to local traders through the IME.
Mobarakeh's latest sales on Monday took place over two weeks after Mobarakeh had closed its sales in the hope that a reduction in supplies would strengthen market demand and create higher prices. However, this policy has not been effective and so Mobarakeh has ended up selling hot rolled coil at a price far lower than the level of two to three weeks ago. Mobarakeh supplied about 100,000 mt of hot rolled coil through the IME last Monday but only about 30,000 mt of this volume was bought by local traders, even though the price was as low as $516/mt.
Hot rolled coil holds the largest market share among flat products and its price usually influences the prices of other flat products such as cold rolled coil, hot dip galvanized, etc. The flat steel market in Iran is practically monopolized by Mobarakeh Steel, with the result that its sales policy can have a decisive impact in the local market .