The welded pipe market in Iran has generally been stable during the past month. Iranian welded pipe producers have not revised their domestic quotations in the national currency amid stable flat steel prices and lack of demand from traders and consuming industries.
However, Iranian welded pipe producers hope that the situation will change for the better soon as buying activity is expected to revive on the back of low inventories and higher demand from the construction sector. Besides, some market players expect higher prices for flat steel due to problems in supply, which would in turn push up welded pipe quotations in the country.
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 19,500-20,000/mt) ex-works, while quotations of 10"-14" pipes are at about $586-603/mt (IRR 20,400-21,000/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 $750-800/mt CFR, unchanged compared to one month ago. Meanwhile, problems with paying for imports against the background of international sanctions continue to weigh on Iranian buyers.
$1 = IRR 34.8 interbank exchange rate
$1 = IRR 12.3 official exchange rate