Buying activity is still slow in the Indian market for welded pipes. Demand for Indian welded pipes from foreign buyers also remains weak ahead of Ramadan in the Middle East, the summer holidays in Europe and due to the rainy season in Southeast Asia.
Over the past two weeks, domestic prices of Indian welded pipes have decreased by a maximum of INR 1,000/mt ($25/mt), while export offers for Indian ERW pipes have declined by $10/mt over the period in question. Indian pipe producers hope to keep their prices stable in the coming period, while both local and foreign buyers continue to insist on further price reductions. Market participants believe no positive changes will be seen in the coming two weeks.
Indian domestic quotations of ½"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 40,000-41,000/mt ($730-745/mt) ex-works. Prices are given excluding tax and on actual weight basis. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 (light series) or IS 1239 are in the range of INR 46,000-47,000/mt ($840-855/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $720-750/mt FOB on theoretical weight basis. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $820-850/mt FOB.