Indian market for seamless pipes remains seasonally quiet

Business activity remains slow in the Indian seamless pipe market due to seasonal factors. However, domestic offers of Indian seamless pipes have increased by INR 2,000/mt over the past month under the influence of the expected demand recovery in September and owing to limited iron ore supply caused by transportation problems during the monsoon season; however, prices stayed unchanged in dollar terms due to currency fluctuations. Export offers of seamless pipes from Indian producers have remained in their previous range. Import offers of Chinese seamless pipes have increased by $30-50/mt over the past month. Market players expect to see a further hike in seamless pipe prices in October on the back of a likely upswing in industrial and infrastructure construction activities. Meanwhile, market insiders remain cautious about the seasonal rebound due to global economic uncertainties.
 
Most offers of Indian seamless pipes 2"-10" grade B made to ASTM A106 are being given to the local market at around INR 54,000-57,000/mt ($1,170-1,230/mt) ex-works on theoretical weight basis, excluding tax. Meanwhile, domestic quotations of the same pipes, 2"-4", from top Indian pipe producers are at the level of INR 64,500-69,000/mt ($1,400-1,490/mt) ex-works.
 
The majority of export offers of Indian seamless pipes, 2"-10" grade B as per ASTM A106, are standing at around $1,200-1,300/mt FOB. Export quotations of seamless pipes, 2"-4" grade B as per ASTM A106, from top Indian pipe producers are at the level of $1,460-1,560/mt FOB.
 
Prices for Chinese seamless pipes, 2"-6" Sch 40 grade B as per ASTM A106, given to India are at $940-1,030/mt CFR actual weight.