The Iranian market for welded pipes remains depressed amid political and economic instability. Market players remain cautious amid a big foreign exchange deficit in the country due to international sanctions against Iran. On the other hand, demand from state projects has declined and this has influenced the market. Although Iranian producers have tried to compensate for currency fluctuations by raising welded pipe prices in the national currency by IRR 1,400-1,900/mt over the past month, offers in US dollar terms have continued to decline by $130-145/mt over the same period. The Iranian welded pipe market outlook remains very pessimistic as any improvement seems unlikely in the coming period.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $550-570/mt (IRR 18,700-19,400/mt) ex-works, while quotations of 10"-14" pipes are at about $560-580/mt (IRR 19,000-19,700/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 $730-760/mt CFR, compared to $700-750/mt CFR one month ago. Besides, imports of welded pipes are barely possible at the moment as the Iranian government compels local market players to halt imports.
$1 = IRR 34,000 interbank exchange rate
$1 = IRR 12,150 official exchange rate