Cold rolled coil (CRC) prices have been rising in the local Iranian market in the last few weeks, the same as prices for most other flat and long steel products in Iran. While weak demand did not allow any recovery of the Iranian CRC market in March and early April, for a few weeks now prices have been on a rising trend in Iran. The high inflation rate in Iran as well as the government policy which has cut subsides for some basic goods and also for energy have impacted most sectors of the Iranian economy, so that nowadays the Iranian steel markets are expecting further price increases in the coming weeks. 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 flats 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 $915-940/mt ex-stock Tehran, up from $900-915/mt about three weeks ago and compared to $895-940/mt about seven weeks ago.
Local traders are offering cold rolled coils produced by Mobarakeh Steel at about $945-955/mt ex-stock Tehran, which is about $10-15/mt higher than the prices of three weeks ago, and about $10-25 higher than the price levels of seven weeks ago. Mobarakeh Steel's cold rolled coil is usually about $10-20 /mt higher than CIS origin or other local mills prices due to it's quality and brand.
On May 2, Mobarakeh Steel sold about 12,000 metric tons of cold rolled coil through the Iran Mercantile Exchange (IME) at about $810/mt ex-works, with 75-day delivery and for payment in cash, which is at the same price level as in early April but about $10/mt higher compared to Mobarakeh's supply via the IME in early March.