Cold rolled coil prices trend upward in local Iranian market

Cold rolled coil prices, just like the prices of other flat steel products, have been on a rising trend in the local Iranian market in recent weeks. The uptrend in the Iranian flat products market is a reflection of developments in the global steel markets. Currently, coil rolled coils of 0.5-1.25 mm thickness - the specification range for which demand is greatest - are changing hands at $780-840/mt ex-stock Tehran, up from $740-820/mt two weeks ago and from $725-780/mt three weeks ago.
 
Mobarakeh Steel, the main Iranian supplier of flat steel products, following the example of rising movements in the global markets for flat products, has been steadily hiking its prices for cold rolled coil in the last few weeks. Last Monday, September 21, Mobarakeh sold 13,710 mt of cold rolled coil via the Iran Mercantile Exchange at $706/mt ex-works with a long delivery period of 90-120 days, representing a price increase of $46/mt compared with Mobarakeh's previous supply through the IME on September 7.
 
Local market demand is not responsible for the abovementioned price increases for cold rolled coil, as local demand has not increased compared with a few weeks ago. Instead, the rising trend in the global markets is pushing Iranian market prices up to higher levels.
 
Mobarakeh Steel, with its annual capacity of about 1.2 million mt of cold rolled coil, can meet the greater part of local market demand for this steel product, while the shortage is usually met by imports from Russia, Ukraine, Kazakhstan and China. According to Iranian customs, in the last Iranian year (ended March 20) Iran imported 494,103 mt of cold rolled coil and sheet.