Hot rolled coil prices have lately been rising in the local Iranian market, following the example of the increasing price trend for long products which has been observed since early January. Currently, Iranian origin 2-5 mm HRC from Mobarakeh Steel is standing in a price range of about $635-670/mt ex-works, compared to approximately $620-660/mt about 10 days ago.Meanwhile, Russian origin 2 mm HRC stands at around $595-605/mt ex-stock Iranian northern ports, representing an increase of about $25/mt in comparison with 10 days ago.
Mobarakeh Steel hiked its prices in its last supply made via the Iran Mercantile Exchange (IME) on Monday, February 1. On the day in question, Mobarakeh sold about 47,000 mt of 2-15 mm HRC through the IME at $550-557/mt ex-works for 50-day delivery, while it also sold another batch of about 37,000 mt of 2-15 mm HRC at $562-581/mt ex-works with 80-day delivery. The sale of HRC for 80-day delivery at a price higher than another batch for 50-day delivery would seem to indicate that local Iranian traders are looking forward to higher prices for HRC in the longer term.
Boosted by the rise in the global steel markets, the local Iranian market for HRC and other flat products is now experiencing a rising trend after a few months of stagnation, is spite of the lack of any change in local demand for HRC. According the the Iranian customs authorities, Iran imported 222,804 mt of HRC in the Iranian month from November 21 to December 20, the highest monthly volume in the whole of 2009.