Iran’s HRC market maintains its falling movement

Iran's domestic hot rolled coil market, just like the local markets for other long and flat steel products, has been experiencing a falling trend in last few weeks in line with the global downturn in steel prices. Currently, local suppliers are offering 2-5 mm HRC at about $600-655/mt ex-stock Esfahan, down $10-15/mt compared with two weeks ago and down about $45-80/mt compared with around four or five weeks ago. Recent developments in the global steel market have strongly influenced the hot rolled coil market in Iran, especially since Iran imports a large volume of hot rolled coil from CIS countries (mainly Russia and Kazakhstan).
 
Last week (May 10) Iranian state-owned flats producer Mobarakeh Steel sold 2.5-12 mm hot rolled coil through the Iran Mercantile Exchange (IME) at $610/mt ex-works with 50-day delivery, representing a reduction of about $18/mt compared to its previous sales via the IME on April 26.
 
Iranian buyers who had been delaying their orders are gradually coming back to the market due to the decline in hot rolled coil prices in the last few weeks. Of course some buyers have decided to hold out for further decreases. The transaction volume has increased in the local market since the time hot rolled coil prices started to decline at the end of April. Meanwhile, local importers have been trying their best to resist the falling movement of prices.
 
According to the new figures from the Iranian customs authorities, Iran imported 2,066,000 mt of HRC  in the last Iranian year (ended March 20), up 75 percent on the volume of 1,179,000 mt registered in the previous Iranian year.