Mobarakeh Steel Company, the main supplier of cold rolled coil to the Iranian market, has hiked its prices for the local market during recent weeks. On July 13, this producer sold cold rolled coil to local buyers at about $614/mt ex-works with 100-day delivery and for cash payment via the Iran Mercantile Exchange (IME). On June 29, Mobarakeh Steel had sold the same material via the IME to local customers at $600-607/mt.
The IME is the main sales channel used by Mobarakeh Steel in the local market, and it seems that Mobarakeh has hiked its cold rolled coil prices for the local market due to certain price increases in the local free market. The surprising thing is that cold rolled coil prices are trending up even though there has not been any significant change in demand or supply levels in Iran. Local demand is at present incapable of boosting prices in a stagnant market such as the current steel market in Iran. However, there are some traders who are seeking to hike prices in the local market - and this has been reflected in the latest sales carried out by Mobarakeh through the IME on July 13.
However, it is too soon to say whether cold rolled prices in the local Iranian market will stabilize at existing levels or whether traders will seek to ramp up prices further in the coming days. Local buyers (mainly end-users) have resisted the new rising trend up to now; however, in the days ahead it will be seen which side (the sellers or the buyers) manages to gain the upper hand.