Lack of demand in the Iranian welded pipe market, the downward trend in the hot rolled coil (HRC) market and the appreciation of Iranian rial against hard currencies have forced Iranian welded pipe suppliers to cut their prices. Over the past month, local Iranian producers' domestic prices for black welded pipes and hollow sections have decreased by IRR 1,000/mt ($36/mt) with no real sign of a recovery in demand emerging. Market players believe significant changes in the market are unlikely in the coming short-term period due to soft demand and the approaching Iranian New Year holiday.
Iranian producers' current domestic prices for 6"-14" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $745-800/mt (IRR 20,500-22,000/mt) ex-works. Prices are exclusive of eight percent VAT.
Local stockists' prices for welded pipes of ½"-3" size from Iranian producers are at about $800-840/mt ex-warehouse, compared to $770-850/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 $690-700/mt ex-warehouse, compared to $790-800/mt ex-warehouse one month ago.
Chinese welded pipes, 2"-8" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at $570-600/mt CFR, $30/mt lower than one month ago.
$1 = IRR 27.50