Iranian seamless pipe market rises despite slack demand

Friday, 02 March 2012 15:14:46 (GMT+3)   |  
       

The Iranian market for seamless pipes has been on an upward trend as the Iranian New Year holidays approach, though end-user demand remains slack amid the unstable economic and political situation in the country. Iranian sellers have increased their offers by $95-160/mt over the past month. Import offers of Chinese material have decreased by a maximum of $50/mt, while prices for CIS seamless pipes have moved up by $10-50/mt over the period in question. However, import offers are still limited due to financing complications caused by the international sanctions against Iran. Some market players think seamless pipe prices may continue to go up after the beginning of the Iranian New Year as the construction season will start supporting seamless pipe suppliers' positions. However, there are still uncertainties surrounding the growth of domestic demand, given the continuing economic instability in the country.

Local stockists' prices for domestic production seamless pipes of ¾"-3" size are at about $1,510-1,980/mt ex-warehouse, compared with $1,370-1,885/mt ex-warehouse one month ago.

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 CFR Bandar Abbas.

Quotations of Ukrainian seamless pipes of 2"-6" size grade B as per ASTM A106 are at about $1,100-1,150/mt CFR Bandar Abbas for March production, while offers of 8"-12" pipes are at $1,170-1,200/mt CFR.

Russian pipes of 2"-8" grade B as per ASTM A106 are being offered to northern Iranian ports at $1,100-1,150/mt CFR Anzali.

Iranian stockists' domestic prices for locally produced seamless pipes:

($/mt, ex-warehouse)

Diameter          Price     Change*

¾"                  1,800       +95

½"                  1,850       +160

1"                   1,980       +95

2 ½"               1,510       +130

3"                   1,510       +140

*over the past four weeks


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