In a bid to curb domestic inflation in the middle of April, the Iranian government tried to control market prices by determining the product prices of the state-owned plants, lowering these prices to a minimum level. Ex-Mobarakeh CRC was sold about two weeks ago via Tehran Metal Exchange at the very low price of $827/mt with a delivery period of 40 days. However, Mobarakeh could not sustain these prices for more than a few days, after which prices resumed their upward trend.
During the current week in the Iranian market, CRC sizes of 0.50-1.50 mm have been booked at a price of $1,070-1,100/mt ex-stock Tehran, while it had stood at a price level of $1,040-1,085/mt the week before. In spite of some fluctuations, just like other flat products CRC prices have been following a general rising trend. In mid-March (i.e. before the Iranian New Year holidays) CRC had stood at a price level of about $200/mt less than current prices. Meanwhile, prices for imported CRC are also seeing an upward trend in line with the rises in the domestic market. This week ex-Russia CRC was offered to Iran at $1,100/mt CIF northern Iran port level.
However, most Iranian traders are already expecting higher prices for flat products and this causes a higher demand than the actual level to come into existence. Naturally such intensified demand could result in a higher jump in prices as demand is already falling considerably short of supply.