Demand levels for seamless pipes in the Indian market have shown a better performance over the past month, and Indian seamless pipe producers have slightly increased prices for their material. The lowest end of domestic quotations of Indian seamless pipes have been raised by INR 1,000/mt over the past month. At the same time the upper end of prices in US dollar terms have decreased by $15/mt on the back of the weakness of the rupee. Export offers of Indian seamless pipes have increased by $20/mt over the analyzed period. Market participants have also noted that the prices for Chinese pipes to the Indian market have declined by $20-30/mt over the past month.
Domestic quotations of locally produced seamless pipes 3"-10" grade B made to ASTM A106 are at around INR 48,000-50,000/mt ($1,030-1,075/mt) ex-works on theoretical weight basis, excluding tax. However, as SteelOrbis has learned, mills' quotations for end-users may be as low as INR 45,000/mt ($970/mt) ex-works.
Export offers of seamless pipes 3"-10" grade B as per ASTM A106 from Indian manufacturers are being given at around $1,000-1,050/mt FOB theoretical weight basis.
Prices for Chinese seamless pipes 2"-6" grade B as per ASTM A106/API 5L are at $710-730/mt C&F actual weight.
Steel demand in India rose by more than eight percent in 2009, buoyed by the government's focus on infrastructure and by the revival in the automobile and consumer goods sectors of Asia's third largest economy. Seamless pipe consumption in India is expected to grow in 2010, boosted by demand from power projects, construction companies and makers of cars and appliances.