The Iranian market for welded pipes remains depressed with little business activity. Local buyers are buying only for immediate needs and in small tonnages. Iranian welded pipe producers have had to make a price reduction of $18-43/mt over the past month due to very low demand in the domestic market and the changes in the exchange rate.
Market participants have doubts about the prospects for any improvement in the near future and are waiting for the outcome of the next round of negotiations on Iran's nuclear program.
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $480-492/mt (IRR 19,500-20,000/mt) ex-works, while quotations of 10"-14" pipes are at about $502-517/mt (IRR 20,400-21,000/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, unchanged compared to one month ago.
$1 = IRR 40,6 interbank exchange rate
$1 = IRR 12,1 official exchange rate