Iran National Competition Council has
announced new instruction for pricing HRC thickness lower than 5 mm, to control
domestic market. The new instruction is as follow:
1-
-The instruction would be for Hot
rolled coil with thickness under 5 mm.
- Three steel mills are related to
this material including Mobarakeh Steel complex, Ahwaz Rolling and Pipe Co ,
Ferro Gilan Complex.
2-
- These Three steel mills are
obliged to follow the new instruction in domestic market for supplying their
HRC product in IME ( Iran Mercantile Exchange) .
- Supplying the material to
military and strategic industries to be used in the same industry would be
exceptional from this instruction
3-
The instruction formula for setting
price of HRC under 5 mm at IME would be as following:
Base price of HRC under 5 mm
thickness = Its global price X
Sana Official ex-rate ( assigned by Central Bank of Iran)
- By global price, it means average
FOB price of CIS and Black sea region published by Metal Bulletin
Magazine, during last 15 days before announcement of the price at IME.
- There won’t be any restriction at
IME for any possible upward trend in this base price.
- These three mills should offer
25% of their supply level of the product at IME main hall .
- If there would be a huge gap
between final price of HRC at IME and global prices, Iran National Competition
Council is obliged to check the market trend regularly for announcing any new
decision if needed.
20th Aug 2017
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Iran Steel Service Center
IFNAA News & Analysis
http://www.ifnaa.ir/en/hom