Seamless pipe prices in Iran are increasing

Oil prices are expected to reach $80 per barrel by the end of this year on optimism about a global economic recovery. Crude prices reflect optimism about financial markets and the return of many companies to profitability. This optimism has pushed up seamless pipe quotations. Domestic mills' prices have increased by $80-100/mt in the last four weeks. Stockists' prices for Iranian production seamless pipes have risen by $80-185/mt over the same period. Over the past month quotations of Chinese seamless pipes have increased by $40-70/mt, Ukrainian quotations are up by $80-130/mt, with Russian offers rising by $20-50mt. But this price increase is based on optimism of market players, but not on real support from customers. Many projects in Iran's energy sector are in suspense in terms of post-electoral unrest. So, it's hard to predict if market will accept new prices.

Current domestic quotations of Iranian production seamless pipes 1"-4" grade B made to API 5L are at $1,100-1,200/mt ex-works, depending on diameter and wall thickness. The prices exclude three percent VAT. Iranian production 1"-4" seamless pipes of grade Х52 made to API 5L are currently offered to the domestic market at on average $1,200-1,300/mt ex-works.

Local stockists' prices for seamless pipes of ½"-1 ¼" size from Iranian producers are at about $1,385-1,410/mt ex-warehouse, 1 ½"-2" seamless pipes are on average at $1,200-1,225/mt ex-warehouse, seamless pipes of 3" size from Iranian producers are at the level of $1,140/mt ex-warehouse.

Import offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local Iranian market at $800-850/mt C&F Bandar Abbas.

Russian pipes of up to 8", grade B as per ASTM A106/API 5L, are being offered to northern Iranian ports at about $780-830/mt C&F Anzali.

Quotations of Ukrainian seamless pipes of 2"-6" size, grade B as per ASTM A106/API 5L, are at $890-900/mt C&F Bandar Abbas, with quotations of 8"-12" size at $990-1000/mt C&F Bandar Abbas.

Iranian domestic prices for seamless pipes from Iranian mills

($/mt, ex-warehouse)

* over the past four weeks