Welded pipe demand in Iran is extremely weak and suppliers have been forced to reduce their prices. In particular, Iranian welded pipe producers have decreased their domestic prices by $40-50/mt over the past month, while local stockists have cut their offers by $45-75/mt. The Iranian government's budget for the new fiscal year has been approved but it will need some time to influence market demand and bring about an improvement in prices. Meanwhile, the negotiations on Iran's nuclear program have given some cause for optimism. However, participants in Iran's welded pipe market prefer to maintain a cautious approach for the moment.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $870-900/mt ex-works, while quotations of 12"-14" pipes are at about $1,010-1,040/mt ex-works. Prices are exclusive of four percent VAT.
Local stockists' prices for welded pipes of ¾"-3" size from Iranian producers are currently varying at around $980-1,035/mt ex-warehouse, compared to $1,030-1,100/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 $850-875/mt, compared to $935-960/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 $810-840/mt CFR, compared to $830-850/mt CFR one month ago.
Iranian stockists' prices for local production welded pipes:
($/t, ex-warehouse, cash payment)
Diameter (inches) | Price ($/mt) | Change* |
0.75 | 1,035 | -65 |
1 | 1,020 | -65 |
1.25 | 1,015 | -70 |
1.5 | 1,015 | -65 |
2 | 1,025 | -75 |
2.5 | 980 | -75 |
3 | 985 | -45 |
* over the past month | ||