The welded pipe market in Iran has remained depressed ahead of the end of the Iranian year (ends March 20). Iranian buyers are still not very interested in domestic welded pipes amid sluggish consuming industries, while import purchases remain complicated due to economic sanctions imposed by the international community. However, domestic prices of welded pipes in Iran have gone up by around $15-45/mt (IRR 400-1,500/mt) over the past month on the back of higher feedstock prices.
Market participants hope demand will improve after the Iranian New Year holiday. Iranian end-users are likely to increase their purchases in line with the start of the construction season.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $575-620/mt (IRR 20,000-21,500/mt) ex-works, while quotations of 10"-14" pipes are at about $630-645/mt (IRR 22,000-22,500/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 $790-810/mt CFR, compared to $750-800/mt CFR one month ago.
$1 = IRR 34.8 interbank exchange rate
$1 = IRR 12.3 official exchange rate