There is some stagnation in the local Iranian cold rolled coil (CRC) market at present. Weak demand as well as high volumes of imported cold rolled coils are the two main factors which have not allowed any recovery for CRC prices in Iran in the last few weeks. On the other hand, local mills' need to bring in cash also forces some of them to sell materials at prices lower than the market levels.
Local Iranian rolling mills which produce CRC (excluding the main domestic flat steel supplier Mobarakeh Steel) have been selling 0.5-1.25 mm CRC at about Rials 9.50-9.90 million/mt ($896-934/mt) ex-works, down from Rials 9.60-10.00 million/mt ($906-943/mt) about two weeks ago. CRC produced by Mobarakeh Steel usually costs about Rials 0.10-0.30 million/mt ($10-28/mt) more than CRC from other local suppliers due to its higher quality.
In July, there has been some stability for CRC prices in the local Iranian market, despite certain fluctuations due to excess supply or short supply for certain specifications.
On July 26, one local Iranian supplier offered CRC at Rials 8.95 million/mt ($844/mt) with three-month delivery and cash payment via the Iran Mercantile Exchange (IME); however, there was no buyer for the material.
On July 25, Mobarakeh Steel sold cold rolled coil through the IME at Rials 8.68 million/mt ($819/mt) ex-works, with 90-day delivery and for payment in cash, with the price level having remained unchanged throughout June and July.
US$1 = Rials 10,600 (official rate)