Activity in the welded pipe market in Iran is still slow due to the sluggishness of consuming industries amid political and economic instability in the country. However, most Iranian welded pipe producers have managed to raise domestic quotations by IRR 100-200/mt ($15-20/mt) over the past month citing high production costs. Meanwhile, in the current situation Iranian buyers prefer to follow a wait-and-see policy. Market operators believe that Iranian welded pipe quotations may remain unchanged in the coming period in the absence of signs of improvement.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $560-575/mt (IRR 20,000-20,500/mt) ex-works, while quotations of 10"-14" pipes are at about $590-605/mt (IRR 21,000-21,500/mt) ex-works. Prices are exclusive of five percent VAT.
Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $700-750/mt CFR, compared to $750-800/mt CFR one month ago.
$1 = IRR 35.6 interbank exchange rate
$1 = IRR 12.11 official exchange rate