An estimated 8.9 million tons of goods worth over 629 trillion rials ($2.2 billion) were sold in the spot market of the Iran Mercantile Exchange in the calendar to Nov. 21.
This was 18% higher on a monthly basis in value while the increase in volume was 24%, the IME website wrote.
IME is a commodities exchange in Tehran founded in 2006 dealing in farm, industrial and petrochemical products in the spot and futures markets.
Trade in the reviewed month mainly included industrial goods and minerals weighing 7.38 million tons worth 379 trillion rials ($1.3b).
As seen in the past four months, cement was the top commodity at 5.17 million tons. This was followed by steel at 1.452 million tons, 29,100 tons of copper, 31,445 tons of aluminum, iron ore 521,000 tons, sponge iron 172,000 tons, 30,535 tons zinc, 560 tons molybdenum concentrate, 200 tons coke, 81 tons precious metals ores/concentrate and 63 kilograms gold ingot.
On the petrochemical and petroleum floor, 1.53 million tons of products worth 242 trillion rials ($864m) were sold.
Trade on this floor included 441,510 tons bitumen, 324,851 tons polymers, 150,081 tons petrochemicals, 15,682 tons of base oil and 447,000 tons vacuum bottom along with 13,850 tons sulfur, 546 tons moisture insulation materials and 135,000 tons lube cut.
On the agriculture floor 1,000 kg saffron changed hands and the IME Side Market hosted 42,795 tons of goods. In this market miscellaneous goods are traded.
Increase in IME deals in recent months is apparently due to the government order to some industrial units to sell their products only via the IME. Last month, the Ministry of Industry told steel manufacturers to offer their products at the IME.
The edict affects companies that produce steel ingot or use it as raw material to produce assorted goods, namely steel billet, blooms, steel slab, steel sheet, steel bar, girder and the like.
Companies that fail to comply with the new rules cannot buy steel ingot from the IME.
Earlier in the year, the ministry in a similar decision ordered cement factories to sell exclusively via the IME.
The IME has emerged as a key player in recent months as the government has encouraged manufacturers to offer goods in this market. Earlier, Mohammad-Sadeq Mofateh, a deputy minister of industries, said the government is determined to expand the scale and scope of IME trade.
“The ministry seeks to offer [more] goods via the IME. Apart from diversifying goods, conditions will be created for major buyers to enter the market,” he said.
Petrochemicals, metal, mineral and agricultural products are already listed at the major exchange. Cement was offered in the recent past and other key items, namely cars and real estate, are expected to join soon.
Earlier in the month, the IME said locally-made cars not subject to mandatory pricing mechanism by the government can be offered in this market.
