An estimated 13.43 million tons of goods were traded in the spot market of the Iran Mercantile Exchange (IME) in the calendar month to May 21.
Compared to the month before, trade was up 71.4% in volume reaching 1,244 trillion rials ($2.18 billion) on the same period last year, IME data showed.
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 88% in volume and 63% of value, respectively, in the spot market.
More than 11.829 million tons of goods worth 904 trillion rials ($1.44b) changed hands on the industrial and mineral floor.
Cement topped the list with 6.07 million tons followed by 1.706 million tons of steel. Other bit tickers were 2.170 million tons iron ore, 27,400 tons copper, 23,425 tons aluminum, 554,100 tons sponge iron, 6,880 tons zinc, 1,370 tons molybdenum concentrate, 48 tons precious metal concentrate.
Trade on the petrochemical and petroleum floor reached 1.31 million tons worth 291 trillion rials ($790 million). This group handled 457,000 tons of bitumen, 510,144 tons polymer, 150,600 tons chemicals, 12,475 tons base oil and 421,000 tons vacuum bottom. It also sold 28,400 tons sulfur, 174,500 tons lube cut and 1,800 tons moisture insulation materials.
Deals in IME’s Side Market reached 149,930 tons. As in the past several months, no deal was reported in the key agriculture floor. It remains why the key agro sector has been absent for so long.
Historic High
The IME made history in the last fiscal (ended March 20). Per data seen on its 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, vehicles, minerals, agro and petroleum products plus petrochemicals are sold via the spot market.
In the year 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 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 -- up 162% and 183% in volume and value, respectively.
Auto Deals
There was 1,705 auto sale during the second month of the current year despite the huge trade last year. As per data, only commercial vehicles, namely heavy-duty and light-duty vehicles, were sold during the period under review.
Auto sale via the IME resumed in the last fiscal year with the sale of 68,215 vehiclesr. Peugeot 207s topped the list with 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 bought.
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 hurt efforts to curb the government’s arbitrary pricing intervention in the auto market.
In July the ministry backtracked and the High Council of Securities and Exchange decided to resume the sale of selected brands. Per current procedures, only cars not subject to pricing mechanism by the government are offered at the IME.
