Activity in the Iranian welded pipe market has remained sluggish due to lack of demand approaching the end of the Iranian year and due to liquidity shortages. However, over the past month, domestic prices for locally produced welded pipes in the local currency have increased by a maximum of IRR 50/mt on the back of somewhat higher flat steel quotations, while prices in US dollar terms have increased by around $10/mt. Market insiders believe demand levels are unlikely to improve in the coming month due to seasonal factors as the end of the Iranian year draws closer.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $665-690/mt (IRR 19,550-20,300/mt) ex-works, while quotations of 10"-14" pipes are at about $690-725/mt (IRR 20,300-21,300/mt) ex-works. Prices are exclusive of five percent VAT.
Chinese welded pipes, 2"-8" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $680-720/mt CFR, up $10-20/mt compared to one month ago.
$1 = IRR 29.4 market exchange rate
$1 = IRR 24.866 official exchange rate