Understanding steel transactions on the Iran Mercantile Exchange

The physical-market board records specific offers with producer, product, volume, price and terms. A completed transaction price is evidence for that offer and date only. Evaluate technical specifications, the price basis, delivery terms and quality evidence together. A lower number is not a comparable offer if it covers a different grade, weight, coating or delivery scope.[1][2]

These articles explain Iran's domestic steel market so international buyers can interpret supplier quotations and delivery signals. Keep Iranian exchange transactions and domestic warehouse prices distinct from an export offer. Confirm whether figures are in rial or toman, per kilogram or tonne, and inclusive or exclusive of applicable taxes. Then request the agreed settlement currency, named export port or delivery location, packing, freight and shipment documents, checking the destination project's material requirements. Domestic market data provides context; the supplier's current confirmed offer governs the actual purchase.

The seller announces product and base price; demand and competition can change the transaction price. Traded volume, demand-to-supply ratio, contract type, settlement, warehouse and delivery date are essential context.[2][3][4]

Store exact product, producer, unit, offered and traded volumes, base and final prices, trade and delivery dates, and settlement type. Weight averages by transaction volume. Compare offers only after aligning units, the weight basis, taxes, packaging, loading, freight and quote validity. An omitted cost can outweigh the apparent saving per kilogram. Keep the supplier’s currency and payment date visible before converting to your purchasing currency.

Ask every supplier to answer the same written specification. This prevents an apparently cheaper offer from silently changing the product or scope. Confirm the following before comparing prices:

Use this table to structure the decision. It does not replace engineering calculations or the contract. The final column identifies the evidence to review before accepting an offer.

Errors often begin when a trade name replaces a technical specification, one photograph stands for an entire shipment, or the delivery scope is missing from the quote. Address these specific risks: Simple averages across unequal volumes; Omitting delivery terms; Generalizing one offer; Confusing rial and toman. Turn each risk into a written acceptance criterion, sampling requirement or traceable document.

A standard number alone does not demonstrate conformity. Specify the edition, grade, dimensions, tolerances, test method, heat or batch number and acceptance authority. For an import project, confirm the destination’s requirements and the project’s approved specification; an Iranian market designation is not automatic evidence of an equivalent local grade.

Exchange records make official physical transactions observable, but do not give the end user's complete cost. Build an explicit bridge from the trade to the buyer's delivered cost.[4][5]

Before ordering, prepare a single comparison sheet covering the product, quantity, unit, theoretical and actual weight, base price, taxes, freight, delivery window, documents and acceptance criteria. Identify who pays each cost and who records discrepancies at receipt. This makes the negotiation clearer and gives the receiving team an agreed basis for checking the shipment.