An estimated 11.4 million tons of goods were traded in the spot market of the Iran Mercantile Exchange (IME) in the calendar month to April 20.
Compared to the month before, trade was up 58.3% in volume reaching 1,022 trillion rials ($1.95 billion), up 82% on the previous month, IME data shows.
IME is a multi-commodity market in Tehran founded in 2006 for farm, industrial and petrochemical products in the spot and futures markets.
As usual, industrial and mineral products led the growth accounting for 84% in volume and 63% of value, respectively, in the spot market.
More than 9.62 million tons of goods worth 643.59 trillion rials ($1.44b) changed hands on the industrial and mineral floor.
Cement topped the list with 5.109 million tons followed by 1.546 million tons of steel. Other major items were 2.398 million tons iron ore, 25,560 tons copper, 28,675 tons aluminum, 550,000 tons sponge iron, 88,450 tons zinc, 790 tons molybdenum concentrate, 48 tons precious metal concentrate and 33 kilograms gold ingot.
Trade on the petrochemical and petroleum floor reached 1.661 million tons worth 348 trillion rials ($790 million).
This category handled 437,000 tons of bitumen, 393,433 tons polymer, 148,975 tons chemicals, 18,475 tons base oil and 434,000 tons vacuum bottom. The list included 49,400 tons sulfur, 186,500 tons lube cut and 400 tons moisture insulation materials.
Deals in IME’s Side Market reached 21,814 tons. As in the past several months, no deal was reported in the key agriculture section.
Historic High
The IME made history in the last fiscal (ended March 20). Per data seen on the IME website, trade exceeded 10,480 trillion rials ($20.54 billion) -- up 58% on the year before.
More than 117.7 million tons of goods were sold in the spot market -- 55% higher y/y. Spot market deals crossed 9,560 trillion rials ($18.7b) climbing almost 52% on the year earlier -- an all-time high since IME’s inception in 2006.
Goods including gold, autos, minerals, agro and petroleum products plus petrochemicals are sold via the spot market.
In the 12 months to March 20, trade on the mineral and industrial floor topped the list reaching 5,711.13 trillion rials ($11.1b), up 54% y/y.
Goods traded on the petrochemical floor reached 6.349 million tons worth 1,840 trillion rials ($3.6b), 180% higher in volume and up 27% in value.
More than 3.7 million derivative contracts worth 203.7 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 838 million commodity-based certificates of deposits (CD) worth 278.7 trillion rials for a variety of goods were traded. This was up 162% and 183% in volume and value, respectively.
Auto Sales
There was no auto sale during the first month of the current year despite the huge offers last year. Auto sale via the IME resumed in the last fiscal year with the sale of 68,215 vehicles last year. Peugeot 207s topped the list at 17,200 units. In the same period 9,970 Tara cars, produced/assembled by IKCO were bought followed by 3,606 Shahin sedans made by the same company, 2,978 Fidelity (Chinese) models manufactured/assembled by Bahman Motors were sold along with 6,105 Haima of Iran Khodro and 1,314 Dignity brands.
Bahman Motors also sold 2,598 Kara pickups, a popular vehicle in Iran originally produced by Mazda.
Data show that 1,426 Lamari Eamas of Arian Pars Motor, 69 KMC T8s by Kerman Motor and 68 JAC S5s by Kerman Motor were sold.
Heavy-duty vehicles, FAW and EM Power brands from China assembled by Bahman Motors and Siba Motor, were also in demand. A total 854 Empower puller trucks by Bahman Diesel and 185 FAW puller trucks from Siba Motor were traded.
Auto sale via the IME was temporarily suspended by the Industries Ministry last May. It argued that the practice was incompatible with rules to regulate the chaotic auto market and added to volatility.
However, the ministry’s move was censured by market observers and stakeholders for “undermining transparency” that hurts efforts to curb the government’s arbitrary intervention in the auto market.
In July the ministry backtracked and the High Council of Securities and Exchange decided to resume offering selected brands. Per current procedures, only cars not subject to pricing mechanism by the government are offered at the IME.
