Activity in the Iranian welded pipe market is still quiet amid a shortage of finance and the stagnation in Iran's construction sector, negatively impacting local market demand for ERW pipes and hollow sections. In spite of this, Iranian mills have increased their welded pipe prices by $90-120/mt over the past month due to higher production costs. Meanwhile, local stockists' prices have seen a downward correction of $15-20/mt over the period under review. Demand levels have continued to be low, with the result that manufacturers and distributors have been experiencing problems with regard to sales. However, producers are not planning to take a backward step in prices for the time being, expecting buyers to accept current price levels soon in the light of expected seasonal improvements in the construction sector.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $850-875/mt (IRR 24.02-24.72 million/mt) ex-works, while quotations of 10"-14" pipes are at about $820-900/mt (IRR 23.17-25.43 million/mt /mt) ex-works.
Local stockists' prices for welded pipes of ½"-2" size from Iranian producers are at about $770-820/mt ex-warehouse, compared to $790-820/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 $655-670/mt ex-warehouse, $15/mt lower compared to one month ago.
Chinese welded pipes, 2"-8" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $500-520/mt CFR, $20/mt lower than one month ago.
$1 = IRR28,257