Welded pipe prices rise in Iran despite low demand

The Iranian market for welded pipes has continued to see limited demand despite recent positive market expectations. Meanwhile, local pipe makers have decided to raise their prices amid the unstable exchange rate. Over the past month, domestic mills' prices of welded pipes have increased by $20-30/mt, while local stockists have raised their offers by $25-60/mt; however, demand has been weak and there has been a low volume of transactions. Iranian buyers remain extremely careful in view of unstable local currency and weakening prices for welded pipes in the global market. Construction activity is still sluggish, and traders prefer to wait for a clearer market sentiment. Market players believe welded pipe demand in Iran is unlikely to improve in the near future. Therefore, no further price increase is expected in the current unfavourable market conditions.
 
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 hot rolled coil (HRC) are at $900-950/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 $850-900/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 $920-980/mt ex-works.
 
Local stockists' prices for welded pipes of ¾"-3" size from Iranian producers are currently varying at around $1,105-1,150/mt ex-warehouse, compared to $1,080-1,100/mt ex-warehouse four weeks ago. Offers of 20 x 20 mm - 100 x 100 mm hollow sections ex-warehouse Tehran are on average at $990-1,020/mt, compared to $1,000-1,030/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 $880-900/mt CFR Bandar Abbas, compared to $900-950/mt CFR four weeks ago. However, financial problems have resulted in limited transactions.
 
Iranian stockists' prices for local production welded pipes:
 
($/t, ex-warehouse, cash payment)
 
Diameter          Price     Change*
 
3/4"                1,150        +50
 
1"                   1,130        +40
 
1 1/4"             1,135        +50
 
1 ½"               1,150        +50
 
2"                   1,150        +60
 
2 ½"               1,105        +25
 
3"                   1,110        +30
 
*over the past four weeks