Iranian demand for seamless pipes continues to weaken

Friday, 12 November 2010 13:32:20 (GMT+3)   |  
       

Buying activity is getting weaker in the Iranian seamless pipe market and import offers have gone down. Over the past month quotations of Chinese seamless pipes have decreased by $30-35/mt, while Ukrainian quotations are down by $50-60/mt. Import offers of Russian seamless pipes have declined by $70/mt over the period under review. Iranian seamless price producer INSIG has maintained its domestic prices at previous levels due to the uncertainty in the market, while stockists' prices for Iranian production seamless pipes have gone up by $20-385/mt over the past four weeks due to expectations of better demand in winter time. Seamless pipe prices in Iran may dip further on the back of Iranian government policy aimed at controlling prices. Recent movements in world steel market have also had a knock-on-effect on Iran's domestic market. At the same time, there are no reasons for a significant fall in prices. Seamless pipe suppliers continue to hope for activity growth in the construction sector of the region in early 2011.

Current domestic prices of Iranian production seamless pipes 1"-4" grade B made to API 5L are at $1,050-1,100/mt ex-works, depending on diameter and wall thickness. The prices exclude three percent VAT. Iranian production 1"-4" seamless pipes of grade Х52 made to API 5L are currently offered to the domestic market at on average $1,100-1,150/mt ex-works.

Local stockists' prices for domestic production seamless pipes of 1"-3" are at about $1,440-1,920/mt ex-warehouse, compared with $1,270-1,630/mt ex-warehouse one month ago.

Import offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local Iranian market at $870-930/mt C&F Bandar Abbas, compared with $905-960/mt C&F four weeks ago.

Quotations of Ukrainian seamless pipes of 2"-14" size grade B as per ASTM A106/API 5L are at $1,015-1,050/mt C&F Bandar Abbas, against $1,075-1,100/mt C&F in the middle of October.

Russian pipes 8"-16" grade B as per ASTM A106/API 5L from Volzhsky PP (TMK) and Uraltrubostal are being offered to northern Iranian ports at about $955-990/mt C&F Anzali, compared with $1,025-1,060/mt one month ago.

Iranian stockists' domestic prices for locally produced seamless pipes:

($/t, ex-warehouse)

Diameter          Price     Change*

1"                   1,920       +290

1 ¼"               1,655       +385

1 ½"               1,540       +110

2"                   1,615       +135

2 ½"               1,440       +40

3"                   1,520       +20

* over the past four weeks


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