Weak demand prevents Iranian welded pipe prices from rising

Friday, 21 August 2009 15:30:00 (GMT+3)   |  

The Iranian flat steel producer Mobarakeh Steel has continued to increase its prices. Currently, Iranian production HRC is being offered to the domestic market at around $535-545/mt ex-works with 90-day delivery. Despite Ramadan, traders are very active and are seeking to rebuild their inventories because of the uptrend in the international market. As regards welded pipes, however, demand is not very strong at present in the Iranian market, and is unable to provide support for any significant price increase. Over the past month welded pipe prices in Iran have been fluctuating depending on demand levels and on the cost of flat products. However, average domestic quotations have remained at previous levels, though in some cases increases of $10-15/mt have been seen. With flat steel prices currently on the rise in the local Iranian market, further increases may also be expected in welded pipe prices. Market players are in particular very optimistic about the prospects for the post-Ramadan period.

Current local prices for Iranian welded pipes of ½"-8" size with wall thickness of 2.0-6.0 mm as per DIN 2394 made of S235JR HR coils are at about $700-735/mt ex-works. Offers of 25 x 25 mm - 110 x 110 mm hollow sections with wall thickness of 2-4 mm made to DIN 2395 are being given to the domestic market at $715-725/mt ex-works. Current domestic prices of Iranian 6"-8" welded pipes made to EN 10219 from S235JR grade HRC or as per ASTM A53 grade B are at levels of $800-850/mt ex-works, with 12" size at $900-950/mt ex-works, and 10"-14" sizes at $1,000/mt ex-works.

Local stockists' prices for welded pipes of ¾"-3" size from Iranian producers are at about $905-935/mt ex-warehouse, compared to $905-930/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 $740-755/mt, compared to $710-730/mt ex-warehouse one month ago.

Chinese welded pipes, 2"-6" grade B made to ASTM A53/API 5L, are currently being offered to the Iranian market at around $780-840/mt C&F Bandar Abbas, $70-80/mt higher than four weeks ago.

Iranian domestic prices for welded pipes from Iranian mills are as follows:

($/t, ex-warehouse, cash payment)

Diameter             Price      Change*

¾"                        930       +10

½"                        935       +5

1"                         910       -10

1 ¼"                     915       +10

1 ½"                     905       -5

2"                         915      -5

3"                         910     +10

*  Over the past four weeks


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