Economy, Business And Markets

IME Spotlight

IME SpotlightIME Spotlight

About 50,000 tons of iron ore, priced $17 per ton, was offered by Sangan Iron Ore Complex in Iran Mercantile Exchange (IME)’s the export trading floor on Wednesday.

According to IME public relations office, the export trading floor also played host to 9,800 tons of bitumen and roof insulation.

Meanwhile, more than 22,390 tons of rebar and I-beams were offered on the industrial and mining trading floor.

Elsewhere, the oil and petrochemical trading floor featured 3,000 tons of various grades of bitumen, as well as 1,000 tons of sulfur.

And the agricultural trading floor played host to 81,020 tons of corn, chickpea, and rice.

Despite sluggish trades on the agricultural trading floor in the first half of the outgoing Iranian year (to end March 20), trade value surged almost four times in the second half.

According to IME reports, the value of trade on the floor stood at around $8.8 million in the first half, while it reached close to $35.2 million in the second half.

The reports also indicate that trade value registered a dramatic surge of about $17 million during the last month of the year.

Competitive prices of commodities offered on the agricultural trading floor, and increased supply of commodities like rice and frozen chicken are the main reasons behind the unprecedented surge, with another significant factor being the regular offering of commodities on the floor, as irregular offering is often accompanied by trust deficit on the part of customers.

Moreover, a new law in the agriculture sector, which is based on guaranteed price instead of guaranteed purchase with the aim of supporting farmers, eliminating middleman, and creating more transparency in prices, is another yet another contributing factor to the upsurge in the value of agricultural trade in the IME.