Hot rolled coil (HRC) prices have been climbing up in the last two weeks in the local Iranian market after several weeks of decline. At present, local traders who import HRC from CIS countries are offering CIS origin 2 mm HRC at about $680-685/mt ex-stock Anzali port (Iranian port, southern Caspian Sea) for immediate delivery and cash payment, up from $645-650/mt about two weeks ago, down from $690-695/mt about three weeks ago and also down from $695-700/mt about five weeks ago.
The higher thicknesses of HRC (i.e., 3-12 mm material, produced by main domestic flat steel supplier state-owned Mobarakeh Steel) currently stand in a price range of about $700-765/mt ex-works Esfahan, up from $690-735/mt about two weeks ago and also up from $700-745/mt three weeks ago, but down from $705-780/mt about five weeks ago.
Mobarakeh Steel has not supplied any HRC material to the local market via the Iran Merchantile Exchange (IME) in the current week. Last week (October 5), it had sold about 40,000 mt of HRC via the IME at $616-630/mt with 78-day delivery. Mobarakeh Steel had also sold HRC via the IME on September 27 at $607-621/mt with 55-day delivery, while it had sold HRC via the IME on September 20 at $610-633/mt with 75-day delivery.
Local flat steel product prices, especially prices of hot rolled coils, have not increased as much as long product prices in the local Iranian market during the last few weeks. This may encourage some flat steel traders in the domestic market to build up large stocks in the hope of bringing in larger profits. However, the Iranian government often influences local HRC market prices by determining Mobarakeh Steel's sales prices for the domestic market.