The Iranian domestic cold rolled coil market has been registering price increases in recent days following a few weeks of downward movement. 0.50-1.25 mm cold rolled coils are now standing in a price range of $710-750/mt ex-stock Tehran for immediate delivery and payment in cash, compared to $690-730/mt just the week before and $680-720/mt ex-stock two weeks ago (the latter price ranges are also on ex-stock Tehran basis).
During the political tension and social unrest which followed the June 12 presidential election in Iran, steel markets in the country were impacted negatively and prices began to fall, as also happened in the local cold rolled coil market. However, with the unrest in question subsiding and also given the price increases in the global steel markets, Iran's cold rolled coil market is now moving on an upward trend.
In its latest sales via the Iran Mercantile Exchange (IME), on June 29 Iranian state-owned supplier Mobarakeh Steel Co. sold 25,640 mt of cold rolled coil to local traders at about $600/mt ex-works with 85-day delivery and for cash payment. Also on the same date via the IME, Mobarakeh sold another batch of 5,000 mt of cold rolled coils at $607/mt ex-works with a longer delivery period of 115 days and for cash payment. The higher price for the longer delivery period (normally a longer delivery period would entail a lower price) would seem to indicate that local traders expect to see further price increases for cold rolled coil in the coming months.
Mobarakeh Steel is the main supplier of cold rolled coil in the Iranian domestic market, meeting approximately 80 percent of local market demand. At the present time there is a large gap of about $110-150/mt between Mobarakeh's sales price for cold rolled coil and the higher free market price. Given such a big price difference, some traders think that Mobarakeh may hike its prices if the free market prices start to move on a stable trend in the coming weeks.
Finally, according to the Iranian customs authorities, Iran imported about 105,560 mt of cold rolled coil in the first two months of the current Iranian year (started March 21), marking a significant jump compared to 54,600 mt of cold rolled coil imports in the corresponding months of last year.