Iran Mercantile Exchange made history in the last fiscal (ended March 20) in terms the volume and value of trade.
As per data published on IME’s website, the value of deals exceeded 6,650 trillion rials ($24.6 billion) – up 90% on the year before.
More than 76.14 million tons of goods changed hands at the IME spot market, which is 128% higher on an annual basis.
The value of deals at its spot market crossed 6,300.6 trillion rials ($23.3b), increasing almost 102% on the year earlier, logging the highest annual growth since the IME inception in 2006.
Goods including gold, minerals, agro and petroleum products plus petrochemicals are traded in the spot market.
In the 12 months to March 20, trade on the mineral and industrial floor had the lion's share reaching 3,698.98 trillion rials ($13.7b), up 123% y/y.
In terms of volume, industrial goods and minerals weighed 57.49 million tons, posting a whopping 319% annual growth.
Cement was the top traded commodity in terms of volume with 34.86 million tons worth 1,690 trillion rials ($6.3b).
Steel was next in volume but first in value. Last year, 14.63 million tons of steel worth 2,440 trillion rials ($9b) was sold at the IME. The floor also hosted 5.23 million tons of iron ore worth costing 152 trillion rials ($562 million).
Goods traded on the petrochemical floor reached 5.37 million tons worth 1,453.8 trillion rials ($5.3b), 4.6% higher in volume and 74% in value.
The major commodities traded in the category were 1.587 million tons of chemicals worth 258.4 trillion rials and 3.78 million tons of polymers worth 1,195 trillion rials.
Trade in petroleum products fell 10% in volume but boomed in value terms. A total of 12.89 million tons in oil products worth 107.5 trillion rials changed hands, indicating 77% rise in value.
Spot deals at the agriculture floor included 6 tons of saffron worth 758 billion rials. Despite the meager share of farm products, the IME has strived to diversify and expand financing methods for agro produce, including creating platforms for trading future contracts for saffron, cumin and pistachio.
In addition, 454 kilograms of gold and worth 6.53 trillion rials was traded in the spot market.
Trade in the Side Market was worth 71.66 trillion rials and weighed 374,303 tons. In this market miscellaneous goods are offered.
Derivatives Market
More than 6.6 million derivative contracts worth 165.57 trillion rials changed hands at the IME last year with futures contracts topping the list.
A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future.
A total of 320.298 million commodity-based certificates of deposits (CD) worth 98.46 trillion rials for a variety of goods were traded at the IME. This was up 141% and 11.6% in volume and value, respectively.
A commodity CD is a security indicating ownership of the holder of a particular amount of a commodity supported by standard warehouse receipt issued by the warehouses certified by the Securities and Exchange Organization, the Iranian capital market regulator.
The mercantile bourse also hosted trade in 8.83 million salaf contracts worth 88 trillion rials. Standard salaf contracts is an Islamic contract similar to futures, with the difference being that the contract’s total price must be paid in advance.
