Commodities worth $547m traded at IME in a week

September 14, 2019

TEHRAN- During weekdays ending up to September 12, while 429,093 tons of commodities worth over $547 million were traded at Iran Mercantile Exchange (IME), the exchange market experienced a growth of 17 percent in its trading value.

According to the report from IME International Affairs and Public Relations Department, last week, on the domestic and export metal and mineral trading floor of IME, 150,964 tons of various products worth close to $265 million were traded.

On this trading floor, 143,252 tons of steel, 5,160 tons of copper, 2,000 tons of aluminum, 140 tons of molybdenum concentrates, 12 tons of precious metal concentrates as well as 400 tons of coke were traded by customers.

The report declares that on domestic and export oil and petrochemical trading floors of IME, 277,901 tons of different commodities with the total value of $300 million were traded.

On this trading floor, 120,700 tons of VB feed stock, 33,326 tons of bitumen, 50,634 tons of polymer products, 21,519 tons of chemical products, 2,296 tons of insulation, 64,500 tons of lube cut oil, 500 tons of base oil as well as 300 tons of sulfur were traded.

Furthermore, 228 tons of commodities was traded on the side market of IME.

On June 24, during the meeting of IME shareholders, IME Managing Director Hamed Soltani-Nejad said that this exchange has prepared ten macro plans to improve its performance during the current Iranian calendar year (ends on March 19, 2020).

He mentioned development of underlying assets through existing instruments, development of financial instruments for commodity-backed securities, expansion of market size and depth, increasing cooperation with other organizations, and strengthening IME brand as some of the mentioned macro plans.

Soltani-Nejad has previously announced that IME accounted for 39 percent of the value of the total trades in the Iranian capital market during the past Iranian calendar year.

He put the value of IME trades at 1.78 quadrillion rials (about $42.3 billion) in the past year.

The value of trades at IME rose 52 percent in the past calendar year from its previous year.

Over 24.84 million tons of commodities valued at 884.3 trillion rials (about $21.05 billion) were traded at the physical market of IME, showing seven percent fall in the amount and 77 percent rise in the worth of trades year on year.

Applying new financial instruments in Iranian capital market was one of the achievements of the country’s exchange markets during the past year. 

In this due, IME launched “option” in early March 2019 in an approach to diversify financing methods for agricultural products.

Option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option. 

MA/MA

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