Iranian welded pipe producers up their prices, stockists reduce theirs

Thursday, 22 October 2009 15:02:03 (GMT+3)   |  

Over the past three weeks local Iranian producers' domestic prices for black welded pipes and hollow sections made from HRC have increased by $20-40/mt. In addition, local producers' quotations of welded pipes made from CRC and of galvanized ERW pipes have risen by $70-80/mt over the same period. For ASTM A53/API 5L standard materials, however, Iranian producers' domestic welded pipe prices have remained unchanged during the period in question.

The reason behind the abovementioned price increases by Iranian welded pipe producers has been the rising trend for flat products which was observed in the Iranian market in September. However, over the past two weeks the local Iranian HRC market has experienced a falling trend due to large inventories and developments in the global steel markets. As a result, a downward correction may be possible in local welded pipe prices in the coming period. On the other hand, market insiders believe that demand is still reasonable and that this may favor a market recovery.

Meanwhile, local stockists' prices have seen a downward correction of $5/mt, following the excessive hikes they made to their prices in September, during which month local mills' prices did not increase.

Current domestic prices for Iranian welded pipes of ½"-8" size with 2-6 mm wall thickness made to EN 10219 or DIN 2394 from S235JR grade HRC are at $750-770/mt ex-works. Offers of 25 x 25 mm - 110 x 110 mm hollow sections with 2-6 mm wall thickness made to EN 10219 or DIN 2395 are being given on average at $750-770/mt ex-works. ERW pipes and hollow sections with 0.9-1.5 mm wall thickness made to EN 10219 from ST 1203 grade CRC are quoted in the domestic market at $880/mt ex-works. Prices for galvanized ERW pipes with 2-6 mm wall thickness made to EN 10255-10240 are at about $1,050/mt ex-works.

Current domestic prices of Iranian 6"-8" welded pipes grade B made to ASTM A53 are at levels of $840-850/mt ex-works, with 12" size at $900-950/mt ex-works, and 10"-14" sizes at $950-1,000/mt ex-works. Similar pipes grade B made to API 5L are priced at $1,100/mt ex-works for 6"-8" sizes, and at $1,200/mt ex-works for 10"-14" sizes.

Local stockists' prices for welded pipes of ¾"-3" size from Iranian producers are at about $930-1,010/mt ex-warehouse, compared to $960-1,015/mt ex-warehouse three weeks ago. Offers of 30 x 30 mm - 100 x 100 mm hollow sections ex-warehouse Tehran are on average at $780/mt, compared to $800-820/mt ex-warehouse three weeks ago.

Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L are currently being offered to the Iranian market at around $650-700/mt C&F Bandar Abbas, $30/mt lower than three weeks ago.

Iran: stockists' prices for local production welded pipes

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

Diameter

Price

Change*

1/2"

1,010

-5

3/4"

1,000

-5

1"

990

-5

1 1/4"

995

-5

2"

990

-5

3"

930

-30

* over past three weeks


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