Welded pipe demand remains slack in Iran amid economic and political instability in the country and slow implementation of construction projects. Iranian suppliers of welded pipes have been forced to cut their offers further amid low demand and falling quotations of flat steel. Over the past month, domestic mills' prices of welded pipes have decreased by around $20-30/mt, while local stockists have cut their offers by $5-65/mt. Demand for welded pipes is expected to get weaker in the Iranian market amid the slowdown in construction activity in winter. However, welded pipe prices in dollar terms may halt their downtrend amid forecasts of further weakening of the Iranian rial against the US dollar.
Iranian producers' current domestic prices for ½"-4" welded pipes with 2 mm wall thickness made to EN 10219 of S235JR grade are at $830-870/mt ex-works. Prices are exclusive of four percent VAT.
Offers of 25 x 25 mm - 110 x 110 mm hollow sections with 2-6 mm wall thickness are being given on average at $780-820/mt ex-works. Water and gas ERW pipes of ½"-4" size with 2.5-3.5 mm wall thickness made to DIN 2440 are being offered to the domestic market at $850-900/mt ex-works.
Local stockists' prices for welded pipes of ¾"-3" size from Iranian producers are currently varying at around $1,010-1,045/mt ex-warehouse, compared to $1,040-1,085/mt ex-warehouse one month ago. Offers of 20 x 20 mm - 100 x 100 mm hollow sections ex-warehouse Tehran are on average at $940-965/mt, compared to $940-970/mt ex-warehouse one month ago.
Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at around $800-850/mt CFR Bandar Abbas, compared to $840-860/mt CFR one month ago.
Iranian stockists' prices for local production welded pipes:
($/t, ex-warehouse, cash payment)
Diameter Price Change*
3/4" 1,040 -45
1" 1,025 -15
1 1/4" 1,010 -40
1 ½" 1,025 -20
2" 1,045 -5
2 ½" 1,015 -45
3" 1,015 -65
*over the past month