Cold rolled coil (CRC) prices have been declining in the local Iranian market in the last two weeks, despite the domestic price increases seen for some flat and long steel products during the same period. From mid-April there was some recovery in the Iranian CRC market; however, it failed to continue in May and there have been some price reductions during the last two weeks in the domestic market. The strengthening of foreign currencies against the Iranian rial in recent weeks created favorable conditions for local suppliers to raise their prices; nevertheless, weak demand, strong competition among local traders and high inventory levels did not allow them to hike their prices. Currently, the local Iranian CRC market is mainly supplied by local mills, principally Mobarakeh Steel, while imports from the CIS supplement the local production.
Local Iranian rolling mills which produce CRC (excluding the main domestic flat steel supplier Mobarakeh Steel) as well as traders who import CRC (i.e., CIS origin material) have been selling 0.5-1.25 mm CRC at about $900-920/mt ex-stock Tehran, down from $915-940/mt about two weeks ago and compared to $900-915/mt about five weeks ago.
Local traders are currently offering cold rolled coils produced by Mobarakeh Steel at about $920-940/mt ex-stock Tehran, while they were selling the same material at $945-955/mt about two weeks ago. Mobarakeh Steel's cold rolled coil is usually about $10-20/mt higher than material of CIS origin or from other local mills due to its reputation for higher quality.
On May 16, Mobarakeh Steel sold about 30,000 metric tons of cold rolled coil through the Iran Mercantile Exchange (IME) at about $810/mt ex-works, with 90-day delivery and for payment in cash, which is at the same price level as throughout April and May but which is about $10/mt higher compared to Mobarakeh Steel's supply via the IME in early March this year.