Economy, Business And Markets

ICEP IPO at Mercantile Exchange

ICEP IPO at Mercantile ExchangeICEP IPO at Mercantile Exchange

Iran Central Plateau Iron Ore Mines Complex (ICEP) launched its initial public offering (IPO) for 50,000 tons of graded iron ore with the base price of $36 per ton on the export trading floor at Iran Mercantile Exchange (IME) on Wednesday, IME’s PR and foreign affairs office said in a report.

According to the report, ICEP said it is committed to offer on the IME 70 percent of its entire annual production, which accounts for 1,260,000 tons of iron ore. Moreover, the complex said it would offer the product at the exchange at least once a month. To show transparency in price discovery, the minimum ordered quantity for the iron ore has been ratified at 2,000 tons per order.

The ICEP is located 10 km away from the city of Bafgh, adjacent to Iran’s largest uninhabited Dasht-e Kavir (Kavir Desert) in Yazd Province.

ICEP is a subsidiary of Iran Minerals Production and Supply Company and its total mine reserves contain approximately 177,200,000 tons of iron ore. The nominal annual production capacity is said to be almost 2 million tons.

In addition to the iron ore, close to 122,000 tons of bitumen as well as 600 tons of building insulation were offered on the export trading floor. Moreover, 20,000 tons of sulfur lumps, and 5,000 tons of granulated sulfur, worth $127 and $95 per ton respectively were on offer on the export trading floor.

Different halls had bustling trading day as various commodities were up for grabs at the IME. The report went on to say that 20,000 tons of I-beam 16 with the base value of 16,410 rials per kg was offered on industrial and mining trading floor, whereas based on the market demand, an additional 20,000 tons was said to be available for customers.

Khuzestan Steel Company said 80,000 tons of bloom was up for grabs on demand. Also, the company offered 60,000 tons of slabs C worth 15,020 rials.  About 3,000 tons of aluminum ingot 99.75% purity worth 69,900 rials per kg was offered by Almahdi Aluminum Company on the industrial and mining trading floor.

The agricultural trading floor witnessed various commodities including 500 tons of soybean meal with the base price of 17,500 rilas per kg, and 500 tons of sunflower meals worth 10,000 rials per kg. Nearly 100 tons of soybean meal plate from Argentina was on the board with the base price of 16,620 rials per kg.

Close to 1,000 tons of Iranian maize, worth 9,200 rials per kg as well as 710 tons of Brazilian maize with the base value of 8,750 rials were put on the agricultural trading floor. The report also said that 200 tons of rapeseed meal, 500 tons of durum wheat, and 200 tons of Indian rice were traded on the weeks’ last trading day.

Based on the report, almost 107,000 tons of chemicals, vacuum bottoms, bitumen and argon gas were among the commodities offered on the oil and petrochemical trading floor.