The increasing offer prices for August production flat products from local supplier Mobarakeh Steel and also from CIS producers is expected to entail at least moderate increases in Iranian pipe makers' prices for welded pipes. Iranian welded pipe producers, who had been waiting to see some clarity in the market, were shocked by the increase in hot rolled coil prices as demand from their end-user customers remains moderate due to the sluggishness in the automotive and construction industries. However, recently Iranian manufacturers were obliged to increase prices for new production by a maximum of $50/mt compared to the levels of four weeks ago. Storage quotations of Iranian black welded pipes have increased by $45-60/mt over the same period. Nevertheless, offers of hollow sections and galvanized pipes from stocks have remained at previous levels due to weak buyer activity. During the coming period Iranian welded pipe producers are expected to increase their product quotations in order to cover their growing costs, as sellers of hot rolled coils continue to raise their prices and try to import more and more material before any trade restrictions can be imposed.
HR coil offers ex-Mobarakeh for local pipe-making plants are at about $485/mt ex-works for August production, up by $30/mt compared to the price for July production materials. Offers of August production HRC from Russia are being given to the Iranian market at $520-530/mt C&F, with offers from Ukraine at around $510-520/mt C&F.
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 the level $800-850/mt ex-works, with 12" size at $900-950/mt ex-works, and 10"-14" size at $1,000/mt ex-works. Offers of welded pipes of 6"-8" grade B made to API 5L are being given to the domestic market at around $1,100/mt ex-works, with 10"-14" sizes at about $1,300/mt ex-works.
Local stockists' prices for welded pipes of ½"-1 ½" size from Iranian producers are at about $905-930/mt ex-warehouse. Offers of 20 x 20 mm - 100 x 100 mm hollow sections ex-warehouse Tehran are on average at $710-730/mt, compared to $710-725/mt ex-warehouse one month ago. Quotations of galvanized welded pipes of 1 ½"-3" size from Iranian producers are at the range of $1,080-1,140/mt ex-warehouse, against $1,070-1,140/mt ex-warehouse four weeks ago.
Chinese suppliers are offering welded pipes, 2"-8" grade B made to ASTM A53/API 5L, to the Iranian market at around $710-760/mt C&F Bandar Abbas, $30/mt higher than four weeks ago.
Iranian domestic prices for welded pipes from Iranian mills
($/t, ex-warehouse)
Diameter Price Change*
½" 930 +50
¾" 920 +45
1" 920 +60
1 ¼" 905 +50
1 ½" 910 +50
* over the past four weeks