Welded pipe prices fall in Iran

The situation in the Iranian market for welded pipes has remained tense due to substantial devaluation of the Iranian rial against the US dollar and slow construction activity amid long-lasting political and economic instability in the country. Despite attempts of Iranian producers to compensate currency fluctuations by lifting welded pipe prices in the national currency, offers in the US dollar terms have continued to decline over the past month. Market players have remained pessimistic regarding further market developments and think that welded pipe prices may continue to decline on the back of the continuous weakening of Iranian currency.
 
Iranian producers' current domestic prices for 6"-8" welded pipes with 2 mm wall thickness of grade B made to ASTM/API are at $680-700/mt (IRR 17,000-17,500/mt) ex-works, while quotations of 12"-14" pipes are at about $705-720/mt (IRR 17,600-18,000/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 $700-750/mt CFR, compared to $700-760/mt CFR one month ago.
 
$1 = Rials 24,950 interbank exchange rate
$1 = Rials 12,120 official exchange rate