TEHRAN-The first offering of hot-rolled coil by Mobarakeh Steel in the year 1405 (started on March 21), despite a high volume of 160,000 tons, faced weak demand, and ultimately a significant portion was traded at the base price.
According to Mehr News Agency, the first offering of Mobarakeh Steel’s hot-rolled coil in 1405, following a pause caused by the 39-day war, came with meaningful signals about the real state of the steel market and downstream industries — an offering that not only led to an adjustment of price expectations but also narrowed the gap between exchange rates and the free market.
According to IRIB (Islamic Republic of Iran Broadcasting), during trading on Tuesday, Ordibehesht 7 (April 27, 2026), Mobarakeh Steel Company of Isfahan offered 160,050 tons of hot-rolled coil (HR) on the physical floor of the Commodity Exchange. However, registered demand for this product was limited to 97,790 tons, and ultimately only 92,510 tons of this offering were traded without price competition at the base rate of 85,000 tomans per kilogram. The sales terms were set as 60% cash and 40% credit — a model intended to stimulate demand but unable to fully overcome the market’s recession.
This is while, prior to this offering, hot-rolled coil was being traded in the free market by intermediaries and speculators at rates as high as 130,000 to even 150,000 tomans. With the news of the offering on the Commodity Exchange, free market prices fell significantly — dropping more than 15,000 tomans — retreating to the price range below 100,000 tomans; a clear sign of the impact of official offerings in curbing emotional and unrealistic prices.
Experts attribute the weak demand in this offering to a set of structural factors, including deep recession in downstream industries, liquidity shortages in production units, and an uncertain economic environment that has led real buyers to postpone their purchases. Under such conditions, even offering part of the sales on credit has not been able to provide sufficient stimulus to increase demand.
In this regard, Davood Azershab, head of the Physical Market Analysis Department of the Commodity Exchange, referring to the previous market situation, stated: “Following recent developments, concerns had arisen about the supply of steel coil in the country, which led to a significant rise in prices outside the exchange. However, Mobarakeh Steel’s extensive offering of hot-rolled coil, accompanied by the support of policy-making institutions, was able to reduce some of these concerns and help restore calm to the market.”
He said: “This interactive approach between major producers and decision-making bodies should continue so that, through the continuous supply of raw materials for downstream industries, damage to the production sector and increased economic pressure on consumers can be prevented.”
Overall, the first major offering of hot-rolled coil this year can be seen as the starting point of price correction in the steel market — a path whose continuation depends, more than anything else, on the return of real demand from consuming industries and improvement in overall economic conditions. Until then, it seems that downward pressure on prices will continue, and the market will remain on a path of gradual adjustment.
MA
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