Iran’s HRC market so far remains stable despite global rising trends

In the local Iranian market, hot rolled coils of 2-5 mm thickness - the specification range which holds the largest share in Iran's HRC market - are currently standing at about $645-670/mt ex-stock Tehran, showing no significant change compared to a few weeks ago. Meanwhile, thicker hot rolled coil sizes (6-12 mm) are standing in a range of $670-680/mt ex-stock Tehran. While both semi-finished and finished steel prices have been soaring in the last few weeks in most markets worldwide, it is surprising that recent trends have not yet influenced hot rolled coil prices in the local Iranian market.
 
Some transactions have lately been concluded based on existing offers of hot rolled coils (i.e., $645-670/mt), which means that this price range is still workable. Local Iranian traders who import hot rolled coils (mostly 2 -2.5 mm material) from CIS countries, mainly via the Caspian Sea, have maintained their previous prices. They are offering 2-2.5 mm hot rolled coils at about $645-650 ex-stock Iranian northern ports. Of course, local demand for hot rolled coil has increased recently, as most traders prefer to place some new orders before the global rising trends influence local hot rolled coil prices.
 
Iranian state-owned steelmaker Mobarakeh Steel, the main supplier of flat products in Iran, has not sold any of its products in the local market since the reopening of the market at the start of April after the Iranian New Year holidays. It seems likely that Mobarakeh will decide its sales policy after monitoring global developments in the coming days.