Iran's oil and gas projects have boosted the domestic market for seamless pipes. Prices for locally produced seamless pipes have increased by $50/mt over the past six weeks. Import offers are on the rising trend as well. Thus, Chinese suppliers have raised their seamless pipe prices for the Iran by $60-70/mt during the past six weeks. Quotations of seamless pipes from Ukraine have increased by $80-110/mt over the period under review. Russian suppliers have raised their prices by $75-130/mt. At the same time, as expected, local stockists' seamless pipe prices have seen a correction - following the speculative policy followed by Iranian seamless pipe traders in March.
Iran's big plans to develop its oil and gas industry and to construct many oil and gas pipelines in the country have created strong demand for seamless line pipes and OCTG. Such strong demand means good opportunities for foreign suppliers, as the product range of locally produced seamless pipes is limited. Imports of seamless pipes to Iran have followed a rising trend in the last five years. Iran imported about 252,000 metric tons of seamless pipes in the first 11 months (21.03.2009-20.02.2010) of the last Iranian year, up from 222,000 metric tons in the corresponding period of the previous Iranian year.
Current domestic prices of Iranian production seamless pipes 1"-4" grade B made to API 5L are at $1,050-1,100/mt ex-works, depending on diameter and wall thickness. The prices exclude three percent VAT. Iranian production 1"-4" seamless pipes of grade Х52 made to API 5L are currently offered to the domestic market at on average $1,150-1,200/mt ex-works.
Local stockists' prices for domestic production seamless pipes of 1"-2 ½" are at about $1,370-1,460/mt ex-warehouse.
Import offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local Iranian market at $900-950/mt C&F Bandar Abbas, compared to $830-890/mt C&F six weeks ago.
Russian pipes of up to 8" grade B as per ASTM A106/API 5L are being offered to northern Iranian ports at about $950-1,030/mt C&F Anzali, compared with $875-900/mt in the middle of March.
Quotations of Ukrainian seamless pipes of 2"-14" size grade B as per ASTM A106/API 5L are at $1,100-1,150/mt C&F Bandar Abbas ($990-1,070/mt in mid-March).
Romanian seamless pipes 2"-10" grade B made to API 5L are quoted at around $1,100-1,150/mt C&F Bandar Abbas.
Japanese seamless pipes from Sumitomo 2"-6" grade B made to ASTM A106/API 5L are being quoted to the Iran at $1,250-1,300/mt C&F.
Iranian stockists' domestic prices for locally produced seamless pipes:
($/t, ex-warehouse)
Diameter Price Change*
1" 1,450 -100
1 ¼" 1,370 -115
1 ½" 1,390 +220
2" 1,460 -110
2 ½" 1,410 +50
* over the past six weeks