Demand in the Indian seamless pipe market is improving slowly, especially from local customers. Domestic mills' prices of seamless pipes have increased by INR 2,000-3,000/mt ($40-65/mt) over the past month. Export quotations have risen by $50/mt over the same period. For last few months exports have been sluggish; however, there are now signs that a revival has started in the international markets. Market players believe that demand in both the domestic and export markets will continue to grow at a healthy rate. The above increases in seamless pipe prices have been due to the higher cost of raw material cost. Seamless pipe producers do not expect product prices to register any decrease: they think that the oil and gas exploration sector in India is very attractive and they see a lot of scope to develop their seamless pipe production. Meanwhile, the number of seamless tube makers in India is growing; in addition to existing players, Maharashtra Seamless Limited, Jindal Saw Limited, ISMT and BHEL, Rashtriya Ispat Nigam Limited is planning a new seamless tube production facility. All the producers see a favorable demand outlook for their products from the power, infrastructure and oil & gas sectors. In this context, it is expected that seamless pipe quotations in India will continue to rise gradually.
Domestic quotations of locally produced seamless pipes 2"-10" grade B made to ASTM A106 are at around INR 45,000-50,000/mt ex-works ($965-1,070/mt) on theoretical weight basis, excluding tax.
The majority of export offers of Indian seamless pipes 2"-10" grade B as per ASTM A106 are standing at around $950-1,000/mt FOB. Meanwhile, export quotations of the same pipes, 2"-4", from top Indian pipe producers are at the level of $1,050-1,100/mt FOB.
Current quotations of Chinese seamless pipes 1"-6" grade B made to ASTM A106/API 5L are at $680-720/mt C&F on theoretical weight basis.