CIS suppliers of seamless pipes to Iran are trying to increase their quotations as Ramadan is now over. However, market insiders believe that the Iranian seamless pipe market has not yet shown signs of recovery, but has only registered slight buying activity after the end-of-Ramadan holiday. Domestic production seamless pipe prices have decreased by $50-100/mt over the past six weeks. Iranian stockists do not seem to have any clear price policy. Their quotations for some sizes of seamless pipes have dropped by $130/mt, while their quotations for other sizes have risen by $120/mt. Also over the past six weeks, offers of Chinese seamless pipes have decreased by $70-80/mt, Ukrainian quotations are up by $40-85/mt, with Russian offers rising by $20/mt.
Current domestic quotations 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 $1,150-1,250/mt ex-works.
Local stockists' prices for seamless pipes of ½"-1 ¼" size from Iranian producers are at about $1,255-1,440/mt ex-warehouse, 1 ½"-2" seamless pipes are on average at $1,240-1,320/mt ex-warehouse, while seamless pipes of 3" size from Iranian producers are at the level of $1,185/mt ex-warehouse.
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 $730-770/mt C&F Bandar Abbas.
Russian pipes of up to 8" grade B as per ASTM A106/API 5L are being offered to northern Iranian ports at about $800-850/mt C&F Anzali. Some offers of seamless line pipes with diameters up to 8" from leading Russian pipe producer TMK are being given to the Iranian market at around $950-1,000/mt C&F.
Quotations of Ukrainian seamless pipes of 2"-6" size grade B as per ASTM A106/API 5L are at $935-985/mt C&F Bandar Abbas, with quotations of 8"-12" size at $1,030-1,050/mt C&F Bandar Abbas.
Broadly steady OPEC output combined with recovering demand will result in the gradual strengthening of demand for seamless line pipe and OCTG. The conclusion of Ramadan in the Middle Eastern countries will favor the growth of buyer activity in the market. As a result, it is likely that Iranian producers of seamless pipes will try to increase domestic quotations in the coming period. Meanwhile, low prices for Chinese seamless pipes will prevent CIS suppliers from achieving higher prices for the time being.
Iranian domestic prices for seamless pipes from Iranian mills
($/mt, ex-warehouse)
Diameter Price Change*
½" 1,440 +55
1¼" 1,255 -130
1½" 1,320 +120
2" 1,240 +15
* - over the past four weeks