Most Iranian seamless pipe buyers have not returned from the Iranian New Year holidays yet. However, seamless pipe offers have started to rise, due to expectations that demand will pick up in Iran. The increase in domestic quotations is also attributed to the low supply of imported material against the background of international sanctions. As direct payment by Iranian importers to foreign suppliers is almost impossible, market players are seeking other solutions, though these cause increases in the cost of material. Iranian sellers have increased their offers by $15-180/mt over the past month, depending on sizes. Import offers of Chinese material have risen by a maximum of $50/mt, while prices for CIS seamless pipes have moved up by $50-100/mt over the period under review. Meanwhile, the Russian and Ukrainian seamless pipe trade with Iran has been badly hit by the ongoing economic sanctions. Market players think that problems in obtaining letters of credit may continue and get worse, and this affects the market prospects.
Local stockists' prices for domestic production seamless pipes of ¾"-3" size are at about $1,525-1,980/mt ex-warehouse, rising by $15-180/mt over the past month, depending on sizes.
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 $900-1,000/mt CFR Bandar Abbas.
Quotations of Ukrainian seamless pipes of 2"-6" size grade B as per ASTM A106 are at about $1,200-1,250/mt CFR Bandar Abbas for April production, while offers of 8"-12" pipes are at $1,270-1,300/mt CFR.
Russian pipes of 2"-8" grade B as per ASTM A106 are being offered to northern Iranian ports at $1,150-1,200/mt CFR Anzali.
Iranian stockists' domestic prices for locally produced seamless pipes:
($/mt, ex-warehouse)
Diameter Price Change*
¾" 1,980 +180
1 1/4" 1,900 +140
1 1/2" 1,715 +180
2" 1,525 +90
2 ½" 1,525 +15
3" 1,580 +70
*over the past four weeks