Despite optimistic sentiments, trading activity has remained slow in the Iranian welded pipe market after the end of Iran's New Year holidays. However, domestic mills' prices for welded pipes have moved up by IRR 300-400/mt over the past month amid expectations of a seasonal rebound in demand, but quotations have lost around $15/mt in dollar terms due to the fluctuations of the rial against the US dollar. Iranian consumers are still quite cautious as the market continues to be characterized by uncertainty.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $545-560/mt (IRR 19,900-20,300/mt) ex-works, while quotations of 10"-14" pipes are at about $570-585/mt (IRR 20,800-21,300/mt) ex-works. Prices are exclusive of five percent VAT.
Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $750-800/mt CFR, compared to $740-780/mt CFR one month ago.
$1 = IRR 36.5 interbank exchange rate
$1 = IRR 12.06 official exchange rate