Demand unlikely to rebound in Indian seamless pipe market

Monday, 02 July 2012 12:14:59 (GMT+3)   |  
       

Indian seamless pipe market sentiment continues to worsen in view of seasonally poor domestic demand from end-users, while foreign demand is also very low amid the unfavorable economic situation. However, Indian seamless pipe manufacturers have kept their domestic quotations in the national currency unchanged, while prices in US dollar terms have dropped by $70-95/mt over the past month due to the weaker rupee. Export quotations of Indian seamless pipes have declined by around $60-100/mt over the period under review. Market players are rather pessimistic about the prospects for a rebound in demand in the coming month given the anticipated slowdown in domestic demand owing to the monsoon season and the summer holiday period in the export markets.

Most offers of Indian seamless pipes of 2"-10" grade B made to ASTM A106 are being given to the local market at around INR 67,000-70,000/mt ($1,175-1,230/mt) ex-works on theoretical weight basis, excluding tax. Domestic quotations of 2"-6" seamless pipes of grade B made to ASTM A106 from top Indian pipe producers are at the level of INR 71,500-74,500/mt ($1,255-1,310/mt) ex-works, excluding tax.

The majority of export offers of Indian seamless pipes of 2"-10" grade B as per ASTM A106 are standing at around $1,230-1,300/mt FOB. Meanwhile, export quotations of the same pipes, 2"-4", from top Indian pipe producers are at the level of $1,310-1,370/mt FOB.

Prices for Chinese seamless pipes, 2"-6" Sch 40 grade B as per ASTM A106, given to India are at $850-900/mt CFR on actual weight basis, compared to $880-950/mt one month ago.


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