Mobarakeh hikes HRC prices for local Iranian market

On April 19, Iranian state-owned flat steel producer Mobarakeh Steel sold hot rolled coil in the local Iranian market for the first time in many weeks. On the date in question, Mobarakeh sold several batches of 2-15 mm hot rolled coil (around 65,000 mt in total) through the Iran Mercantile Exchange (IME) at $628/mt ex-works with 60-day delivery. The previous sales of Mobarakeh to the local market via the IME go back to March 6 when it sold hot rolled coil at $570-578/mt ex-works with 73-day delivery. Thus, Mobarakeh's HRC sales on April 19 represent an increase of $50-58/mt compared to the March 6 sales.
 
Most Iranian market participants have been expecting an increase in Mobarakeh's prices for hot rolled coils due to global developments in recent weeks. The global price of steel, especially of hot rolled coil, has an important influence on Mobarakeh's hot rolled coil pricing for the local market, although the Iranian government often intervenes in relation to Mobarakeh sales prices in order to control the local market. Mobarakeh's latest price increase for hot rolled coil could encourage local traders to maintain or raise their prices, thereby possibly intensifying the rising trend in the market in the coming days.
 
Local traders are currently offering 3-12 mm hot rolled coil at about $680-700/mt ex-stock Esfahan or at about $10-15/mt higher ex-stock Tehran. CIS origin 2 mm HRC has been offered by local traders at $670/mt ex-stock Iranian northern port. Meanwhile, in the local market it is harder to find Mobarakeh production 2 mm HRC - the price of which is about $20-30/mt higher than that of the CIS material.