The latest booking in the local Iranian market of 2-5 mm hot rolled coils via local traders has been concluded at $580-650/mt ex-stock Tehran for immediate delivery and payment in cash, up from $550-615/mt about two weeks ago and from $540-590/mt three weeks ago. Thicker hot rolled coil specifications (6-15 mm) are currently standing in a price range of $570-660/mt ex-stock Tehran.
On June 29, Iranian state-owned supplier Mobarakeh Steel Company sold about 30,000 mt of 2-15 mm hot rolled coils at about $451-464/mt ex-works with 54-day delivery and payment in cash through the Iran Mercantile Exchange (IME). Also on June 29 via the IME, another batch from the same producer, of 35,000 mt of 2-15 mm hot rolled coils, was sold at about $486-532/mt ex-works with 84-day delivery and for payment in cash.
Regarding Mobarakeh's prices, it is surprising to see material with a longer lead time, 84 days compared to 54, standing at a higher price, $35-68/mt higher in this case.Usually a lower price would be expected for a longer delivery period. The explanation for the higher price in this case could be that both seller and buyer are expecting to see an increase in hot rolled coil prices in the coming two to three months.
The Iranian flat steel market was characterized by heavy stagnation and a downtrend in prices during the period of political unrest which followed the June 12 presidential election. However, this market decline was temporary fall and a revival was seen after a few weeks. Of course, while demand in Iran is not so strong as to exceed supply, the price hikes of local suppliers (e.g. Mobarakeh) on the one hand as well as the increases in global steel prices on the other hand could both intensify the rising trend seen in the last two weeks in Iran's domestic hot rolled coil market.