The lack of end-user demand for welded pipes in Iran has prevented any improvement in the market situation, while local buyers remain very cautious. Most Iranian welded pipe producers have cut their domestic prices by a maximum of IRR 1,000/mt over the past month, while prices in US dollar terms have decreased by $5-35/mt. Market participants still prefer to maintain a wait-and-see policy in order to gain a clearer picture of future developments 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 $680-710/mt (IRR 20,000-21,000/mt) ex-works, while quotations of 10"-14" pipes are at about $710-745/mt (IRR 21,000-22,000/mt) ex-works. Prices are exclusive of five percent VAT.
Chinese welded pipes, 2"-8" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $680-720/mt CFR, compared to $700-740/mt CFR one month ago.
$1 = IRR 29.5 market exchange rate
$1 = IRR 24.9 official exchange rate