The Iranian welded pipe market has experienced a downward trend over the past month due to lower demand and currency exchange rate reduction. Market players believe the main factor behind the market decline is the international campaign of sanctions on Iran, aimed at curbing its nuclear program.
Currency shortages have increased in the country, while the domestic construction sector remains sluggish. Accordingly, local welded pipe producers have had to make price cuts of $35-45/mt over the past month. In such market conditions, domestic welded pipe prices in Iran are expected to keep falling 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 $505-535/mt (IRR 16,500-17,500/mt) ex-works, while quotations of 10"-14" pipes are at about $520-545/mt (IRR 17,000-17,800/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 $750-800/mt CFR, compared to $730-760/mt CFR one month ago.
$1 = IRR 32,700 interbank exchange rate
$1 = IRR 12,189 official exchange rate