The seasonal slump in the Iranian market for welded pipes continues. Traders prefer to avoid puchase activity, as they think that mills' domestic quotations in the local currency may start to go down in view of the expected further strengthening of the rial against the US dollar, given the lack of support among buyers for further price increases. Over the past month domestic prices of Iranian welded pipes have moved up by $20-50/mt in US dollar terms due to higher production costs and the strengthening of the national currency during the past two to three weeks. However, Iranian pipe makers have found no strong support from buyers, and so a downward correction may be possible in local welded pipe prices in the coming period.
Iranian producers' current domestic prices for welded pipes of ½"-4" size with 2 mm wall thickness made to EN 10219 or DIN 2394 from S235JR grade HRC are at $820-870/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 made to EN 10219 or DIN 2395 are being given on average at $800-850/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 $995-1,005/mt ex-warehouse, compared to $900-1,000/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 $880-900/mt, compared to $850-870/mt ex-warehouse four weeks ago.
Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at around $840-940/mt CFR Bandar Abbas, compared to $840-870/mt CFR one month ago.
Iranian stockists' prices for local production welded pipes:
($/t, ex-warehouse, cash payment)
Diameter Price Change*
3/4" 1,000 0
1" 995 +65
1 1/4" 1,000 +70
1 ½" 1,005 +65
2" 1,005 +75
2 ½" 1,005 +95
3" 995 +95
*over the past four weeks