Activity levels in the Iranian welded pipe market have remained depressed. Poor demand from consuming industries amid a lack of infrastructure projects, tight liquidity and pressure from Chinese imports have all negatively influenced the Iranian welded pipe market. Iranian pipe producers have cut their domestic offers by around IRR 400-500/mt over the past month, while prices in dollar terms have fallen in the same period by $25-30/mt. Most Iranian buyers prefer to adopt a cautious attitude towards new purchases and are waiting for the impact of the government's new plans.
Iranian producers' current domestic prices for 6"-14" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $820-890/mt (IRR 21,800-23,600/mt) ex-works. Prices are exclusive of eight percent VAT.
Chinese welded pipes, 2"-8" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $630-650/mt CFR, $10-20/mt lower compared to one month ago.
$1 = IRR 26.6 official exchange rate