Domestic and export prices of Indian welded pipes are falling again under pressure from import materials, in particular from ex-China materials. Over the past two weeks domestic quotations of Indian black and galvanized ERW pipes have declined by INR 2,000/mt ($40/mt, currency fluctuations taken into account). Export offers of Indian welded pipes have decreased by $20-30/mt over the period under review.
It is reported that Indian steel giant and price setter Steel Authority of India (SAIL) is likely to reduce domestic spot prices of flat steel products by about INR 500/mt as compared to November levels, given the threat of loss of volumes to cheaper imports. In all likelihood, other Indian steel producers of flat products, like Ispat Industries, Essar Steel, JSW, etc., would follow suit. Thus, welded pipe producers in India will have the possibility of reducing their prices in the context of competition with import material, while also supported by lower production costs. At the same time, by the end of this year welded pipe manufacturers in India hope at least to achieve prices stability as construction activity will start to pick up and as demand is expected to improve.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at levels of INR 30,000-32,000/mt ($650-695/mt) ex-works on theoretical weight basis, excluding tax. Current offers of 6"-16" black ERW pipes with 3-12.7 mm wall thickness as per ASTM A53/API 5L are being given to the domestic market at around INR 31,000-32,000/mt ($670-695/mt) ex-works. Current domestic prices of galvanized ERW pipes made to BS 1387 or IS 1239 are in the range of INR 35,000-36,000/mt ($760-780/mt) ex-works.
Export quotations of Indian 1"-6" black ERW pipes as per BS 1387 (light series) are at the level of $680-700/mt FOB, with export offers of 1"-6" galvanized ERW pipes at $750-780/mt FOB. Offers of 6"-16" welded pipes with 3-12.7 mm wall thickness grade B made to ASTM A53/API 5L are being given to the external market at around $700-720/mt FOB.