Iranian HRC market still rises despite unsatisfactory demand

In the last two weeks the Iranian hot rolled coil (HRC) market has continued the rising trend which started after the end of the Iranian New Year holiday in early April. Local market demand for HRC is not so strong yet, as a lot of buyers have still to return to the market. The rising prices in the Iranian market are due to inflation (25-30 percent). Prices in the Iranian markets traditionally rise early in the new Iranian year.
 
Local Iranian traders who import HRC from CIS countries are currently offering CIS origin 2 mm HRC at about $720-725/mt ex-stock Anzali port (Iranian port, southern Caspian Sea) for immediate delivery and cash payment, up from $715-720/mt two weeks ago and up from $700-710/mt about six weeks ago. 
 
Higher sizes of HRC, i.e., 3-12 mm produced by state-owned Mobarakeh Steel, are now standing at prices of about $745-760/mt ex-works Esfahan, up from $730-750/mt two weeks ago and up from $710-720/mt about ten weeks ago.
 
On April 25, Mobarakeh Steel, the main supplier of flat steel in Iran, sold about 20,000 mt of hot rolled coil to the local market via the Iran Mercantile Exchange (IME) at about Rials 650-665 million/mt (about $625-640/mt) ex-works with 60-day delivery. Mobarakeh has not changed its HRC price at the IME in the past several weeks despite the fluctuations seen in the local and global markets.
 
At present, CIS suppliers are offering 2 mm HRC at about $700-710/mt CFR Iranian northern ports, down from $750-760/mt about two weeks ago and down from $730-750/mt in early March.