On May 25, Mobarakeh Steel sold about 70,000 mt of 2.5-12.5 mm hot rolled coil via the IME at $450-515/mt ex-works for 5-60 day delivery and for payment in cash. Mobarakeh's sales price was $27-48/mt higher than its sales price one week previous.
Iran's overall domestic HRC market was also influenced by the rumors of an imminent increase in the import duty on steel products. 2-5 mm hot rolled coil thickness is currently being transacted by local traders in a price range of $520-560/mt ex-stock Tehran, up from $500-515/mt ex-stock Tehran just the week before. 2 mm hot rolled coil thickness, the specification which holds the largest market share, has registered the biggest price increase and the highest price level among the other sizes, and is now standing at $560/mt ex-stock Tehran.
The abovementioned rumors have artificially raised local demand in Iran for certain long and flat products, consequently boosting prices up to higher levels. Only time will tell whether the present rising trend will maintain its strength. However, there are still some doubts among local traders in Iran regarding the sustainability of the current price levels.