On Monday, September 7, major Iranian steelmaker Mobarakeh Steel again hiked its prices for hot rolled coil in the local market. On the day in question, Mobarakeh sold about 29,000 mt of 2.0-4.99 mm hot rolled coil via the Iran Mercantile Exchange (IME) at an average price of $544/mt ex-works with 75-day delivery, while competition among buyers pushed the price on the day up to a peak level of $590/mt ex-works. In the previous week, Mobarakeh had sold the same hot rolled coil sizes via the IME at $535/mt with 82-day delivery.
On September 7 at the IME, Mobarakeh also sold about 30,000 mt of 5-15 mm hot rolled coil at an average of $561/mt with 75-day delivery, with competition among buyers pushing the peak price of the material up to $600/mt ex-works. Mobarakeh had sold hot rolled coil of the same size at $546/mt with 82-day delivery at the IME the week before.
Mobarakeh new price increase has shocked the Iranian market and caused some disturbances in local prices. The new rising trend even forced some traders to close their sales as the actual market price has lacked clarity. However, there has been mention of a price of $630-735/mt for 2-5 mm hot rolled coil based on ex-stock Tehran, up from $585-670/mt just the week before. It is not clear if this new price range is workable as the local market is confused at the moment and most attempted transactions have been frustrated. (The price for 2 mm thickness has increased strongly in recent weeks due to low supply, and in fact the above maximum prices refer to size 2 mm, whereas other sizes stand at about the above minimum level).
Hot rolled coil is one of the steel products which Iran imports in large quantities. In the last Iranian year (ended March 20) Iran imported about 1.15 million mt of HRC, while in the first four months of the current Iranian year it imported about 567,500 mt, according to the figures issued by Iran's customs authorities. HRC imports of about 1.7 million mt are anticipated for the current Iranian year.