HRC prices drop down in Iran while ex-CIS import offers still rise

Hot rolled coil (HRC) prices have declined in the last two weeks in the local Iranian market, following the rising trend observed in January. CIS suppliers of HRC have been raising their prices steadily since their resumption of sales activity after the New Year holidays; however, their increased prices have not yet been able to exert an influence on the HRC price trend in the Iranian market.
 
Local Iranian traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about $670-680/mt ex-stock Anzali port (Iranian port, southern Caspian Sea) for immediate delivery and cash payment, down from $690-695/mt about three weeks ago and down from $675-685/mt seven weeks ago. Higher sizes of HRC, i.e., 3-12 mm produced by main domestic flat steel supplier Mobarakeh Steel, are now standing at prices of about $710-720/mt ex-works Esfahan, down from  $715-730/mt about three weeks ago but up from $685-710/mt about five weeks ago and up from $700-715/mt around seven weeks ago.
 
At present, CIS suppliers are offering 2 mm HRC at about $770-780 mt CFR Iranian northern ports, up from $720/mt about three weeks ago and also up from $700-710/mt about five weeks ago. However, these prices have been unable to attract the interest of Iranian buyers due to the lower HRC prices available in their domestic market, including lower prices of ex-CIS ready stock material. 
 
On February 14, state-owned Mobarakeh Steel sold about 136,000 mt of hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about $610-620/mt ex-works with 60-day delivery. Mobarakeh Steel has kept its prices stable for the local market in the last few weeks despite the fluctuations of prices in Iran.