Iranian welded pipe prices rise despite weak activity

Friday, 27 January 2012 14:33:01 (GMT+3)   |  
       

Iranian welded pipe suppliers have moved up their prices on the back of higher offers of hot rolled coil (HRC) in the market and the further weakening of the Iranian rial against the US dollar. Over the past month, domestic mills' prices of welded pipes have increased by around $20-30/mt, while local stockists have raised their offers by $5-40/mt. However, Iranian buyers remain cautious and prefer to maintain a waiting stance amid the political and economic instability in the country and seasonal factors. Market participants believe any significant increase in welded pipe prices is unlikely in the coming period as the market is not yet ready to accept higher prices, also taking into account the coming Iranian New Year holiday.

Iranian producers' current domestic prices for ½"-4" welded pipes with 2 mm wall thickness made to EN 10219 of S235JR grade are at $850-900/mt ex-works. Prices are exclusive of four percent VAT.

Offers of 25 x 25 mm - 110 x 110 mm hollow sections with 2-6 mm wall thickness are being given on average at $800-850/mt ex-works. Water and gas ERW pipes of ½"-4" size with 2.5-3.5 mm wall thickness made to DIN 2440 are being offered to the domestic market at $870-920/mt ex-works.

Local stockists' prices for welded pipes of ¾"-3" size from Iranian producers are currently varying at around $1,020-1,060/mt ex-warehouse, compared to $1,010-1,045/mt ex-warehouse one month ago. Offers of 20 x 20 mm - 100 x 100 mm hollow sections ex-warehouse Tehran are on average at $1,045-1,070/mt, compared to $940-965/mt ex-warehouse one month ago.

Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L, are still being offered to the Iranian market at the level of one month ago, i.e., at $800-850/mt CFR Bandar Abbas. However, there is a shortage of imported welded pipes in the market due to the international sanctions against Iran.

Iranian stockists' prices for local production welded pipes:

($/t, ex-warehouse, cash payment)

Diameter          Price     Change*

3/4"                1,060        +20

1"                   1,050        +25

1 1/4"             1,050        +40

1 ½"               1,035        +10

2"                   1,050        +5

2 ½"               1,020        +5

3"                   1,020        +5                   

 *over the past month


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