Cold rolled coil (CRC) prices have been coming down in the local Iranian market in the last three weeks despite the previous expectations of both buyers and sellers for a recovery especially coming closer to the end of the Iranian year (ends March 20) - a period when the Iranian steel markets have traditionally registered increased levels of activity. The rising trend of import CRC offers (in particular CIS origin material) has failed to impact the local Iranian market as Iran does not import so much CRC at present. Currently, the local Iranian market is mainly supplied by main domestic flat steel producer Mobarakeh Steel and other small local rolling mills.
Local Iranian rolling mills which produce CRC (excluding Mobarakeh Steel) as well as traders who import CRC (i.e., CIS origin) have been selling 0.5-1.25 mm CRC at about $880-910/mt ex-stock Tehran, down from $910-930/mt about three weeks ago, down from $900-925/mt about five weeks ago, and at the same level as eight weeks ago.
Local traders are offering cold rolled coils produced by Mobarakeh Steel at about $910-940/mt ex-stock Tehran, which is about $10-15/mt less than the prices of three weeks ago and down from $915-945/mt five weeks ago. Mobarakeh Steel's cold rolled coil usually stands at a higher price than CIS origin CRC or CRC from other Iranian mills due to its higher quality. On February 22, Mobarakeh Steel sold about 40,000 mt of cold rolled coil through the Iran Mercantile Exchange (IME) at about $787/mt ex-works with 90-day delivery and for payment in cash. With the aim of controling local market prices for CRC, state-owned Mobarakeh Steel has not changed its sale prices of CRC for several weeks despite the price movements observed in the local spot market.