Economy, Business And Markets

Scrap Metal at IME

Scrap Metal at IME
Scrap Metal at IME

Trade of scrap metal will start on October 7 on the Iran Mercantile Exchange, after Iran Railways Company offered 500 tons of scrap metal to the market.

Ali Panahi, the deputy for market development and economic studies in IME, said 500 tons of scrap metal will be offered at 9,200 rials ($0.35) per kilogram in IME’s ‘other market’ on Tuesday. He added that the scrap metal will be sold in cash for October 18 deliveries in Tehran.

IME has started negotiations with the Association of Iranian Steel Manufacturers, oil ministry, automakers, municipalities, and waste disposal and recycling centers in order for more scrap metal to be offered in IME’s ‘other market’.

IME has four main markets including spot market, derivatives market, property market, and ‘other market’, which is experiencing its first ever offer by the 500-ton scrap metal.

Iran annually produces two million tons of scrap metal, while another two million tons is required to fulfill domestic demand. The country imports hundreds of thousands of tons of scrap metal from neighboring CIS countries every year.

Experts believe the scrap shortage in Iran is a serious threat against the domestic steel industry as the current annual production, reaching almost 20 million tons, requires a far bigger supply of used material.

Scrap is recyclable material left over from product manufacturing and consumption, such as auto parts, building materials, and surplus materials. Scrap metal is also supplied through ship wreckage, rusting trains, old vehicles, and torn down dilapidated buildings.

Steel manufacturers can make significant savings by using scrap; they can save on energy, raw materials and recycling. Using scrap also helps with reducing air pollution, water consumption, and water pollution. Above all, for steelmakers, every ton of new steel made from scrap iron saves 1,115 kilograms of iron ore.

  Other Commodities

More than 31,000 tons of commodities valued at 588 billion rials were offered at the physical market of IME on Saturday.

According to the IME website, 1,420 tons of aluminum alloy ingots from Iranian Aluminum Company (IRALCO) were traded at the industrial and mineral trading floor. Nearly 1,185 tons of polyethylene and epoxy resin valued at 44 billion rials were also offered by various petrochemical companies and traded on Saturday. Nearly 8,730 tons of different chemicals were also offered by different petrochemical firms.

According to the website, Danagam Company offered 720 tons of insulation and Yekta Bam-e Delijan Company offered 22 tons, with $470 base price per ton.

In the category of the bitumen, 5,500 tons of bitumen 60/70 were offered on Saturday by Akam Bitumen Company and 3,000 tons by Fara Shimi Rooz Company. Also 2,450 tons of bitumen 60/70 were offered by Nagin Fakhr Azarbaijan, 2,000 tons of the same grade by Akam Bitumen Company, and 300 tons by Negin Kam Pars Company.

According to the website, 2,200 tons of corn from western province of Kermanshah with the base price of 9,200 rials were also traded at the agricultural trading floor on Saturday.