There are no positive signs in the Iranian welded pipe market amid a shortage of demand in the construction sector and a lack of liquidity. Buyers prefer to conclude deals just to meet their immediate needs and are anxious to avoid high stock levels. Over the past month, local Iranian producers' domestic prices for black welded pipes and hollow sections have decreased by $5-20/mt, while local stockists' prices for hollow sections have declined by $15-20/mt over the period under review. However, the number of transactions is very low, traders remain cautious and sentiment as regards the future market is full of uncertainty. The coming winter season may place additional pressure on Iranian pipe producers.
Iranian producers' current domestic prices for 6"-14" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $810-860/mt (IRR 21,700-23,100/mt) ex-works. Prices are exclusive of eight percent VAT.
Local stockists' prices for welded pipes of ½"-3" size from Iranian producers are at about $850-930/mt ex-warehouse. Offers of 20 x 20 mm - 100 x 100 mm hollow sections ex-warehouse Tehran are on average at $810-825/mt ex-warehouse.
Chinese welded pipes, 2"-8" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $600-650/mt CFR, unchanged compared to one month ago.
Official exchange rate: $1 = IRR 26.8